Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 23 July 2014

Mentha-Oil Menthaoil settled flat on subdued demand in the spot markets following higher supplies from the major producing regions. The prices weakened further on the expectations of higher output from the major producing belts. Mentha oil prices failed to hold onto the higher levels seen last week as lack of strong demand made the higher levels unsustainable. 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. Sources are expecting that the total exports is likely to reach in the range of 21000 to 21500 tonnes as most of exporters are showing strong buying participation at current levels with the anticipation of limited supplies in next marketing season. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. Sources mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. In Chandausi total arrivals are at 15 Drums (1-drum-180kg), down by 5 Drums(1-drum-180kg) from previous trading day. In Rampur total arrivals are at 25 Drums(1-drum=180kg), higher by 3 Drums(1-drum=180kg) as against previous day. In Bareilly sources reported arrivals at 25 Drums(1-drum-180kg), up by 5 Drums(1-drum-180kg) from previous day’s arrivals. Technically market is under long liquidation as market has witnessed drop in open interest by -0.29% to settled at 4761, now Menthaoil is getting support at 701.6 and below same could see a test of 694.5 level, And resistance is now likely to be seen at 716.6, a move above could see prices testing 724.5.