Commodity Trading Tips for Mentha Oil by KediaCommodity

Mentha-OilMenthaoil April contract dropped Rs 31.6 and settled at Rs 1023.4 as sluggish demand from consuming industries in the spot market against increased supplies from Chandausi in Uttar Pradesh mainly kept pressure on prices. Arrival stood 150-200 drums in different spot markets, as prices decreased. Sentiments to remain under pressure on higher production prospects, high stock levels and the reports of good sowing reports. However, the demand from corporate sector may support the prices to some extent. According to the latest reports, the total area under cultivation is expected to rise by 20% at 2.1 lakh ha against last year's 1.75 lakh ha. Meanwhile, production is estimated higher at 60-65,000 tons higher than last year’s production. Meanwhile, mentha oil output is estimated to remain at around 65,000 tonnes this year, compared to 53,000 tonnes in the previous year, also influenced the prices. The demand side some low level buying seen from the Pharma and FMCG sector as summer demand but major demand from Gutka industries are absent this year after the Ban on Gutka in many states. On 6th April, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 27, 627 kg of which 1, 27, 627 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 6, 36, 188 kg of which, physical stock accounted for 6, 35, 468 and demat stock was 720 kg. The contract made intraday low of Rs 1023.4 a kg and high of Rs 1047 a kg with the volume of 3204 and total open interest for the same contact was at 2373.Now support for the menthol is seen at 1015.5 and below could see a test of 1007.7. Resistance is now likely to be seen at 1039.1, a move above could see prices testing 1054.9.

Trading Ideas:

Mentha oil trading range for the day is 1007.7-1054.9.

Menthaoil spot is at 1135/-. Spot market is down by Rs.3/-.

Mentha oil dropped as sluggish demand from consuming industries in the spot market against increased supplies.

Sentiments to remain under pressure on higher production prospects, high stock levels and the reports of good sowing reports.

Total stock of mentha oil at warehouses at Chandausi was 1, 27, 627 kg of which 1, 27, 627 kg was physical stock