Commodity Trading Tips for Mentha Oil by KediaCommodity

Mentha-OilMenthaoil July contract gained Rs 10.2 and settled at Rs 1330 driven by rising spot demand from pharmaceutical industries against less arrivals. Restricted arrivals from Chandausi in Uttar Pradesh also influenced the mentha oil prices. According to spot market sources, the overall acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh ha this year. The overall production of Mentha is expected to increase by 30% - 40% as compared to last year. 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. According to spot market sources, the overall acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh ha this year. In Rampur, mentha oil (68 GLC) quoted at Rs 1,430 per kg, in Chandausi Rs 1,440 per kg, in Sambhal at Rs 1,440 a kg, in Barabanki at Rs 1,395 a kg. On 24th July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 15, 414 kg of which 1, 03, 908 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 12, 96, 949 kg of which, physical stock accounted for 11, 48, 990 and demat stock was 1, 47, 959 kg.. The contract made intraday low of Rs 1300 a kg and high of Rs 1335.2 a kg with the volume of 5627 and total open interest for the same contact was at 2521.Now support for the menthol is seen at 1308.3 and below could see a test of 1286.5. Resistance is now likely to be seen at 1343.5, a move above could see prices testing 1356.9.

Trading Ideas:

Mentha oil trading range for the day is 1286.5-1356.9.

Menthaoil spot is at 1470/-.Spot market is up by Rs.15/-.

Mentha oil rose driven by rising spot demand from pharmaceutical industries against less arrivals.

Restricted arrivals from Chandausi in Uttar Pradesh also influenced the mentha oil prices.

On 24th July total stock of mentha oil at MCX warehouses at Chandausi was 1, 15, 414 kg