Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 5 August 2014

Mentha-Oil Menthaoil settled up 1.48% at 713.9 due to pick-up in domestic and export demand in the spot market. Further, restricted arrivals from Chandausi in Uttar Pradesh too supported mentha oil prices. Demand is to pick up in the coming days that could support the prices which have fallen a lot over last few months. However, robust stock laying in the mandis may keep uptrend limited. In Rampur mandi arrivals were reported at 15 Drums(1-drum=180kg), down by 5 Drums(1-drum=180kg) as compared to previous day. In Bareilly estimated market supply was at 15 Drums(1-drum-180kg), lower by 5 Drums(1-drum-180kg) as compared to previous day. In Barabanki arrivals were reported at 325 Drums(1-drum-180kg), steady as against previous day’s arrival. In Sambhal sources reported arrivals at 50 Drums(1-drum=180kg), down by 30 Drums(1-drum=180kg) as against 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. Traders 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 short covering as market has witnessed drop in open interest by -0.89% to settled at 9369 while prices up 10.4 rupee, now Menthaoil is getting support at 708 and below same could see a test of 702 level, And resistance is now likely to be seen at 717.8, a move above could see prices testing 721.6.