Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 4 March 2013

Mentha-Oil Menthaoil March contract gained Rs 4.7 and settled at Rs 1237.1 on some short covering after prices as high stock levels kept the rising rates under check. Adequate stocks availability in the physical market following increased arrivals from Chandausi in Uttar Pradesh kept pressure. In Rampur, mentha oil (68 GLC) quoted at Rs 1,370 per kg, in Chandausi Rs 1,380 per kg, in Sambhal at Rs 1,380 a kg, in Barabanki at Rs 1,345 a kg. Total production of mentha oil stood around 45,000 tons and it is likely that carry forward stock may be around 3,000 tons. On 28th February, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 12, 886 kg of which 1, 12, 886 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 9, 38, 054 kg of which, physical stock accounted for 8, 86, 566 and demat stock was 51, 487 kg. Moreover, the total opening stocks of Mentha oil are expected to reach 20000-22000 tonnes in the next year. This may also convene the sufficient supplies of mentha oil next year. On the demand side, Mentha oil consumption might incite significant decline in the current year due to ban imposed by various state governments on gutka sale along with the sluggish export demand of mint products in the coming months. The contract made intraday low of Rs 1224.8 a kg and high of Rs 1238.7 a kg with the volume of 2728 and total open interest for the same contact was at 3776.Now support for the menthol is seen at 1228.4 and below could see a test of 1219.6. Resistance is now likely to be seen at 1242.3, a move above could see prices testing 1247.4.