Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 25 July 2014

Menthaoil settled up 0.83% at 712.6 supported by pickup in demand from consuming industries in the spot market. Further, tight stocks position in the physical market following restricted arrivals from the major producing belts too supported mentha oil prices uptrend. In Rampur estimated market supply was at 30 Drums(1-drum=180kg), up by 5 Drums(1-drum=180kg) from previous day's arrivals. In Bareilly estimated market supply was at 25 Drums(1-drum-180kg), higher by 5 Drums(1-drum-180kg) from previous trading day. In Barabanki total arrivals are at 350 Drums(1-drum-180kg), unchanged as compared to previous day's arrival. In Sambhal estimated market supply was at 50 Drums(1-drum=180kg), up by 10 Drums(1-drum=180kg) as compared to previous day. In Chandausi sources reported arrivals at 12 Drums(1-drum-180kg), down by 13 Drums(1-drum-180kg) from previous day's arrivals. Sources 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. Sources 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. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. Sources mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. Technically market is under short covering as market has witnessed drop in open interest by -8.72% to settled at 4332 while prices up 5.9 rupee, now Menthaoil is getting support at 705.4 and below same could see a test of 698.8 level, And resistance is now likely to be seen at 718.3, a move above could see prices testing 724.6.