Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 1 September 2014

Mentha Menthaoil settled up 0.35% at 696.6 amid tight stocks position in the physical market due to restricted arrivals from producing belts. Further, rising demand from consuming industries in the spot market too supported prices. However, expectations of higher production due to favorable weather conditions, capped some gains in mentha oil prices to some extent. In the current season, the production of mentha oil is estimated at about 50,000 to 60,000 tons, whereas last year this figure was 38,000 to 42,000 tons. Thus up to 40 per cent of stock is estimated to be still lying in the godowns. Mentha is an aromatic herb used for medicinal oil extraction. Mentha oil is used widely in cosmetic and food industry as "mint" for flavour. It includes toothpaste, mouth freshener, medicines, drinks, mouth-wash, chewing gum, desserts and confectionery products. Mint leaves are used in beverages, jellies and syrups. At Barabanki total arrivals are at 285 Drums(1-drum-180kg), up by 5 Drums(1-drum-180kg) as compared to previous day. At Chandausi market total arrivals are at 15 Drums(1-drum-180kg), higher by 8 Drums(1-drum-180kg) from previous trading day. At Sambhal market total arrivals are at 50 Drums(1-drum=180kg), down by 20 Drums(1-drum=180kg) from previous trading day. At Bareilly market sources reported arrivals at 15 Drums(1-drum-180kg), higher by 10 Drums(1-drum-180kg) as against previous day. Technically market is under fresh buying as market has witnessed gain in open interest by 5.48% to settled at 9257 while prices up 2.4 rupee, now Menthaoil is getting support at 694.4 and below same could see a test of 692.2 level, And resistance is now likely to be seen at 699.4, a move above could see prices testing 702.2.