Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 12 May 2014

Mentha-Oil Menthaoil settled up 0.61% at 878 on the account of weak sowing progress in local mandies along with strong export demand in local mandies. As per the market sources, the total sowing acreage of mentha oil is expected to decline by 20-25% in the current year on the account of delayed harvesting mustard and wheat crop in major areas of Uttar Pradesh and Punjab coupled with poor realization rate from mentha oil. Sources added that the total production of mentha oil in the current year is likely to be around 35-36 thousand tonnes against the previous year of 50 thousand tonnes. The prices were also supported by strong export demand in local mandies. Traders mentioned that the total exports of mentha oil for the full year April 1, 2013 to March 31,2014 are likely to surpass the previous record of 20,500 tonne , ie. reported in 2008. Traders are expecting that the total exports is likely to reach in the range of 21000 to 21500 tonnes as most of exporters are showing strong buying participation at current levels with the anticipation of limited supplies in next marketing season . Total arrivals in Sambhal are at 40 Drums (1-drum=180kg), up by 10 Drums (1-drum=180kg) as against previous day and total arrivals in Barabanki are at 80 Drums (1-drum-180kg), lower by 5 Drums (1-drum-180kg) from previous day. Technically market is under short covering as market has witnessed drop in open interest by -0.55% to settled at 3636 while prices up 5.3 rupee, now Menthaoil is getting support at 866.3 and below same could see a test of 854.5 level, And resistance is now likely to be seen at 890.6, a move above could see prices testing 903.1.