Commodity Trading Tips for Menthaoil by KediaCommodity

Ajay Kumar Kedia 12 December 2013

Menthaoil settled down -0.98% at 837.5 on profit booking after prices gained on the back of strong demand in the spot markets amid hopes of export demand may pick up in the coming days. Further, tight stocks position in the physical market following restricted arrivals from producing region also supported the uptrend. As per market sources, the total stock position of around 33-34 thousand tonnes of mentha oil has been reported in the major mandies. This can easily meet the average annual domestic demand of 32-33 thousand tonnes. Moreover, the total opening stocks of the current year were also estimated higher at 12 thousand tonnes against 8 thousand tonnes that were reported last year. Market sources suggested that the total production of mentha oil is estimated around 54-55 thousand tonnes in the current year against 45 thousand tonnes of the last year. Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries. The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year. India's production of mentha oil may touch 60000 tons this year. Area under crop may touch 2.10 lakh ha vs 1.75 lakh ha last year. Technically market is under fresh selling as market has witnessed gain in open interest by 2.7% to settled at 6362 while prices down -8.3 rupee, now Menthaoil is getting support at 831.9 and below same could see a test of 826.4 level, And resistance is now likely to be seen at 847.3, a move above could see prices testing 857.2.