Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 21 August 2014

Mentha-Oil Menthaoil settled down -0.61% at 705.5 due to sluggish demand from consuming industries in the spot market. Further, increased arrivals of the commodity in the physical market from the major producing belts in Uttar Pradesh too supported the downside in mentha oil prices. At Sambhal market estimated market supply was at 50 Drums(1-drum=180kg), steady as against previous day’s arrival. At Bareilly market total arrivals are at 4 Drums(1-drum-180kg), down by 1 Drums(1-drum-180kg) from previous day’s arrivals. At Rampur market arrivals were reported at 25 Drums(1-drum=180kg), higher by 5 Drums(1-drum=180kg) from previous trading day. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. 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. The total stock position of mentha oil is currently reported at around 45-50 thousand tonnes against the average annual domestic demand of 32-33 thousand tonnes. Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries. The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year. Technically market is under long liquidation as market has witnessed drop in open interest by -1.74% to settled at 7469 while prices down -4.3 rupee, now Menthaoil is getting support at 701.1 and below same could see a test of 696.7 level, And resistance is now likely to be seen at 711.2, a move above could see prices testing 716.9.