Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 18 April 2013

Mentha-Oil Menthaoil April contract dropped Rs 9.9 and settled at Rs 984.3 on the heels of the strong supply situation in the domestic market against sluggish demand in domestic and international market. The total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year, up almost 10-12% from the last year. This is mainly due to the better price realization and favourable crop conditions. Moreover, the total opening stocks of Mentha oil are expected to reach 13000-15000 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. In Rampur, mentha oil (68 GLC) quoted at Rs 1,062 per kg, in Chandausi Rs 1,070 per kg, in Sambhal at Rs 1,075 a kg, in Barabanki at Rs 1,045 a kg. On 16th 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 5, 64, 533 kg of which, physical stock accounted for 5, 63, 813 and demat stock was 720 kg. The contract made intraday low of Rs 972.8 a kg and high of Rs 996.9 a kg with the volume of 3320 and total open interest for the same contact was at 1460.Now support for the menthol is seen at 972.4 and below could see a test of 960.6. Resistance is now likely to be seen at 996.5, a move above could see prices testing 1008.8.