Commodity Trading Tips for Menthaoil by KediaCommodity

Ajay Kumar Kedia 13 July 2012

Menthaoil July contract gained Rs 28.9 and settled at Rs 1262.4 tracking a firm trend at spot market on strong retailers and export demand. Sentiment improved further as tight supplies in the spot markets due to less arrivals from growing belts of Chandausi in Uttar Pradesh. Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year. That may keep on giving support to the market time to time. Sentiments likely to remain slight weak till arrivals continue as no strong demand is expected soon. Production this year likely to exceed 50000 tonnes as per sources vs 38000 tonnes last year Higher sowing activities due to the high rates obtained by farmers last year resulted in higher production this year. In Uttar Pradesh, the largest producer of Mentha Oil in India, the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha. The total arrivals stood at 750-800 drums. In Rampur, mentha oil (68 GLC) quoted at Rs 1,315 per kg, in Chandausi Rs 1,325 -1,330 per kg, in Sambhal at Rs 1,330 a kg, in Barabanki at Rs 1,265 a kg. On 10th July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 94,925 kg of which 83, 420 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 5, 85, 099 kg of which, physical stock accounted for 5, 64,585 and demat stock was 20, 513 kg. The contract made intraday low of Rs 1222.3 a kg and high of Rs 1267.2 a kg with the volume of 5747 and total open interest for the same contact was at 4416. Now support for the menthol is seen at 1234.1 and below could see a test of 1205.7. Resistance is now likely to be seen at 1279, a move above could see prices testing 1295.5.