Commodity Trading Tips for Menthaoil by KediaCommodity

Ajay Kumar Kedia 29 May 2013

Commodity Trading Tips for Menthaoil by KediaCommodity Menthaoil June contract gained Rs 10.9 and settled at Rs 933.6 on back of strong demand in the spot markets amid hopes that exports demand may gain momentum in coming days. Speculators enlarging their positions on firm demand in sport market also influenced the prices. Sources are suggesting some more supplies of new mentha oil in the first week of June. Moreover, weak demand by exporters also added some selling in the mentha oil market. The concerns of shift in production trend from natural mentha oil to synthetic mentha oil in international market might discourage the export demand of mentha oil in the coming months. Besides the new arrivals, the strong production estimates also propelled some stockiest selling from higher levels. The total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year, up almost 10-12% from the last year. This is mainly due to the better price realization and favourable crop conditions. Moreover, the total opening stocks of Mentha oil are expected to reach 13000-15000 tonnes in the next year. This may also convene the sufficient supplies of mentha oil next year. Total stock of mentha oil at MCX-monitored warehouses of Chandausi was 42,434 kg of which 43,434 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 366,170 kg of which, physical stock accounted for 366,170. The contract made intraday low of Rs 917.2 a kg and high of Rs 937.3 a kg with the volume of 3255 and total open interest for the same contact was at 1931. Now support for the menthol is seen at 921.4 and below could see a test of 909.3. Resistance is now likely to be seen at 941.5, a move above could see prices testing 949.5.