Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 12 July 2012

Mentha-Oil Menthaoil July contract gained Rs 29.7 and settled at Rs 1236 on the back of fresh buying by the traders due to rising spot demand, while upside movement is capped on account of higher arrivals. Arrivals of the fresh crop have started in the main sowing regions and currently stand around 1200 drums. Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year. That may keep on giving support to the market time to time. Sentiments likely to remain slight weak till arrivals continue as no strong demand is expected soon. Production this year likely to exceed 50000 tonnes as per sources vs 38000 tonnes last year Higher sowing activities due to the high rates obtained by farmers last year resulted in higher production this year. In Uttar Pradesh, the largest producer of Mentha Oil in India, the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha Short term trend remains volatile till arrivals continue while exporters wait for further dips before initiating fresh demand in the mandis. On 9th July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 94,925 kg of which 83, 420 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 5, 85, 099 kg of which, physical stock accounted for 5, 64,585 and demat stock was 20, 513 kg. The contract made intraday low of Rs 1210.2 a kg and high of Rs 1241 a kg with the volume of 4473 and total open interest for the same contact was at 4423.Now support for the menthol is seen at 1217.1 and below could see a test of 1198.3. Resistance is now likely to be seen at 1247.9, a move above could see prices testing 1259.9.