Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 12 June 2014

Mentha-Oil Menthaoil recovered from lows to settle flat due to strong demand at spot markets from consuming industries. Further, restricted arrivals from Chandausi in Uttar Pradesh and expectation of weak sowing progress in local mandies too supported mentha oil prices. In Rampur traders reported arrivals at 80 Drums(1-drum=180kg), up by 10 Drums(1-drum=180kg) as against previous day.in Bareilly arrivals were at 30 Drums(1-drum-180kg), up by 5 Drums(1-drum-180kg) as compared to previous day. In Sambhal total arrivals were at 80 Drums(1-drum=180kg), higher by 20 Drums(1-drum=180kg) from previous trading day. In Barabaki Arrivals were reported at 90 Drums(1-drum-180kg), steady as against previous day’s arrival. As per the market sources, the total sowing acreage of mentha oil is expected to decline by 20-25% in the current year on the account of delayed harvesting mustard and wheat crop in major areas of Uttar Pradesh and Punjab coupled with poor realization rate from mentha oil. Sources added that the total production of mentha oil in the current year is likely to be around 35-36 thousand tonnes against the previous year of 50 thousand tonnes. The prices will also be well supported by strong export demand in local mandies. Sources are expecting that the total exports is likely to reach in the range of 21000 to 21500 tonnes as most of exporters are showing strong buying participation at current levels with the anticipation of limited supplies in next marketing season. Technically market is under long liquidation as market has witnessed drop in open interest by -0.48% to settled at 4159 while prices down -0.6 rupee, now Menthaoil is getting support at 790.4 and below same could see a test of 785.2 level, And resistance is now likely to be seen at 800.8, a move above could see prices testing 806.