Mentha Oil: Sell Mentha Oil Apr below 1006 keeping stop-loss above 1034

Achiievers Equities | Jan. 13, 2017, midnight


Mentha oil prices dropped amid subdued physical demand for mentha oil in the domestic spot market. Prices also dropped on the speculation the area under cultivation can increase this year resulting good production. Now on domestic side traders had estimated earlier total production in the range of 35000-37000 tons for this year, and currently it appears that the average estimate might be reduced to 30000 tons due to lower plantings on falling prices in the last two years. Trade sources estimate that total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season resulting into a proportionate fall in Mentha oil production this year.

 

However, a pickup in sowing over last couple of weeks have ensured prices falling for the commodity, as low demand further pressurized market sentiments. At Sambhal market arrivals were reported at 50 Drums(1-drum=180kg), down by 10 Drums(1-drum=180kg) from previous trading day. At Barabanki market arrivals were reported at 100 Drums(1-drum-180kg), steady as against previous day’s arrival. At Chandausi market Mentha DMO is offered firm at Rs. 830 per Kg, up by 1.22 per cent as compared to previous day. Mentha Flakes at Chandausi market is quoted firm at Rs. 1150 per Kg, up by 1.77 per cent as compared to previous day. Mentha Crystal at Chandausi market is offered strong at Rs. 1185 per Kg, higher by 3.95 per cent as compared to previous day.


 

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