Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 28 July 2014

Mentha-Oil Menthaoil settled down -1.24% at 716.5 due to sluggish demand from consuming industries in the spot markets. Further, ample inventories in the physical market following increased arrivals from the major producing belts too added pressure on mentha oil prices. Higher stock and lack of strong demand in the mandis did not support the sentiments. In Rampur total arrivals are at 20 Drums(1-drum=180kg), down by 10 Drums(1-drum=180kg) as against previous day. In Bareilly sources reported arrivals at 25 Drums(1-drum-180kg), higher by 5 Drums(1-drum-180kg) as compared to previous day. In Barabanki estimated market supply was at 350 Drums(1-drum-180kg), steady as against previous day’s arrival. In Sambhal total arrivals are at 80 Drums(1-drum=180kg), up by 30 Drums(1-drum=180kg) from previous day’s arrivals. In Chandausi arrivals were reported at 7 Drums(1-drum-180kg), lower by 5 Drums(1-drum-180kg) as compared to previous day. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. Sources mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. As per market sources, most of the cultivators and traders have reported strong liquidation in the major mandies to meet their cash requirement during the festivals season. Technically market is under fresh selling as market has witnessed gain in open interest by 18.36% to settled at 7851 while prices down -9 rupee, now Menthaoil is getting support at 710.5 and below same could see a test of 704.4 level, And resistance is now likely to be seen at 722.2, a move above could see prices testing 727.8.