Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 22 July 2014

Menthaoil settled down -0.66% at 711.3 as traders booked profits after the recent gains and sluggish demand in spot markets following higher supplies from the major producing regions. The commodity prices weakened further on the expectations of higher output from the major producing belts. However with prices having fallen a lot over last few months, there are expectations of demand picking up in the coming days that could support the falling prices to some extent. In Bareilly total arrivals are at 20 Drums(1-drum-180kg), unchanged as compared to previous day's arrival. In Rampur Estimated market supply was at 22 Drums(1-drum=180kg), down by 3 Drums(1-drum=180kg) as compared to previous day. IN Barabanki Estimated market supply was at 350 Drums(1-drum-180kg), steady as against previous day's arrival. In Sambhal Estimated market supply was at 50 Drums(1-drum=180kg), unchanged as compared to previous day's arrival. In Chandausi arrivals were reported at 20 Drums(1-drum-180kg), down by 15 Drums(1-drum-180kg) from previous trading day. Sources mentioned that the total exports of mentha oil for the full year April 1, 2013 to March 31,2014 are likely to surpass the previous record of 20,500 tonne , ie. reported in 2008. Sources added that the total production of mentha oil in the current year is likely to be around 35-36 thousand tonnes against the previous year of 50 thousand tonnes. Technically market is under long liquidation as market has witnessed drop in open interest by -2.23% to settled at 4775 while prices down -4.7 rupee, now Menthaoil is getting support at 705.1 and below same could see a test of 698.4 level, And resistance is now likely to be seen at 722.4, a move above could see prices testing 733.