Commodity Trading Tips for Menthaoil by KediaCommodity

Ajay Kumar 18 November 2013

Menthaoil settled down -1.36% at 875 tracking weakness in spot demand amid profit booking increased supply in the spot market. As per market sources, most of the cultivators and traders have reported strong liquidation in the major mandies to meet their cash requirement during the festivals season. The total stock position of mentha oil is currently reported at around 45-50 thousand tonnes against the average annual domestic demand of 32-33 thousand tonnes .The market sources also suggested that all the major pharmaceutical and food confectionery industries are already sitting with comfortable stocks in their warehouses. 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. This is mainly due to the better price realization and favourable crop conditions. 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. 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. Technically market is under fresh selling as market has witnessed gain in open interest by 0.04% to settled at 4749 while prices down -12.1 rupee, now Menthaoil is getting support at 868.4 and below same could see a test of 861.8 level, And resistance is now likely to be seen at 885.8, a move above could see prices testing 896.6.