Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 24 July 2014

Mentha-Oil Menthaoil settled down -0.8% at 706.7 on the expectations of higher output from the major producing belts. However, tight stocks in the physical market due to restricted arrivals from producing regions, capped losses in mentha oil prices. In Bareilly total arrivals are at 20 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) as against previous day. In Rampur sources reported arrivals at 25 Drums(1-drum=180kg), steady as against previous day’s arrival. In Barabanki estimated market supply was at 350 Drums(1-drum-180kg), steady as against previous day’s arrival. In Chandausi sources reported arrivals at 25 Drums(1-drum-180kg), higher by 10 Drums(1-drum-180kg) from previous day’s arrivals. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -0.32% to settled at 4746, now Menthaoil is getting support at 703.4 and below same could see a test of 698.7 level, And resistance is now likely to be seen at 713, a move above could see prices testing 717.9.