Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Leyangi 4 September 2014

Mentha-Oil Menthaoil settled down -0.98% at 670.2 due to fall in demand in the spot market. Besides, increased arrivals of the commodity in the physical market from the major producing belts in Uttar Pradesh too supported mentha oil prices downtrend. At Chandausi market arrivals were reported at 70 Drums(1-drum-180kg), up by 70 Drums(1-drum-180kg) from previous trading day. At Sambhal market sources reported arrivals at 60 Drums(1-drum=180kg), steady as against previous day’s arrival. At Barabanki market sources reported arrivals at 350 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Rampur market total arrivals are at 15 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. At Bareilly market total arrivals are at 6 Drums(1-drum-180kg), steady as against previous day’s arrival. 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. India's production of mentha oil may touch 60000 tons this year. Area under crop may touch 2.10 lakh ha vs 1.75 lakh ha last year. Technically market is under fresh selling as market has witnessed gain in open interest by 0.12% to settled at 9417 while prices down -6.6 rupee, now Menthaoil is getting support at 666.4 and below same could see a test of 662.5 level, And resistance is now likely to be seen at 676.6, a move above could see prices testing 682.9.