Commodity Trading Tips for Menthaoil by Kedia Commodity

Mentha oil on MCX settled up by 0.22% at 1029.6 amid rising demand in the domestic spot market. Further, tight stocks position on restricted supplies from producing belts of Chandausi in Uttar Pradesh, too supported mentha oil prices uptrend. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper, versus 23000 of total exports last year. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks, thus whenever requirement arises, industry people will be purchasing from the farmers. This will be another bullish price driver. Indian markets had reported higher sowing for current year. Traders had estimated earlier that the total production in the range of 35000-37000 tons for this year, and currently it appears that the average estimate might be reduced to 30000 tons due to lower plantings on falling prices in the last two years. Mentha oil spot at Sambhal closed at 1147.60 per 1kg. Spot prices was up by Rs. 0.40/-.Technically market is under fresh buying as market has witnessed gain in open interest by 29.65% to settled at 2733 while prices up 2.3 rupees, now Menthaoil is getting support at 1023.8 and below same could see a test of 1018 level, And resistance is now likely to be seen at 1035.4, a move above could see prices testing 1041.2.

Trading Ideas:

# Menthaoil trading range for the day is 1018-1041.2.

# Mentha oil spot at Sambhal closed at 1147.60 per 1kg. Spot prices was up by Rs. 0.40/-.

# Mentha oil prices gained amid rising demand in the domestic spot market.

# Further, tight stocks position on restricted supplies from producing belts of Chandausi in Uttar Pradesh, too supported mentha oil prices uptrend.

# China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports