Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 27 August 2014

Mentha-Oil Menthaoil settled up 0.79% at 692.3 supported by improving demand from consuming industries in the spot market. Further, lower arrivals from Chandausi in Uttar Pradesh, too supported mentha oil prices uptrend. At Bareilly market estimated market supply was at 6 Drums(1-drum-180kg), up by 1 Drums(1-drum-180kg) as against previous day. At Chandausi market total arrivals are at 10 Drums(1-drum-180kg), higher by 3 Drums(1-drum-180kg) from previous day’s arrivals. At Sambhal market arrivals were reported at 70 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. At Barabanki market sources reported arrivals at 280 Drums(1-drum-180kg), steady as against previous day’s arrival. At Rampur market total arrivals are at 20 Drums(1-drum=180kg), up by 5 Drums(1-drum=180kg) from previous day’s arrivals. 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. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. Technically market is under fresh buying as market has witnessed gain in open interest by 14.77% to settled at 8721 while prices up 5.4 rupee, now Menthaoil is getting support at 683 and below same could see a test of 673.8 level, And resistance is now likely to be seen at 698.4, a move above could see prices testing 704.6.