Friday, 7 November 2014

Today Mentha Oil Review In Commodity Market

The mentha oil futures market remained closed because of Gurunank jayanti. On Wednesday, the spot prices at the key physical markets increased a tad. The spot prices at the Chandausi markets increased by around Rs.5/kg and quoted near  Rs.710/Kg. Meanwhile, spot prices at the Barabanki and Sambhal markets spot prices rose to Rs.745/Kg and Rs.777/Kg respectively up byRs.5/Kg. We did not see any major changes in the arrivals too and it stood around 150 drums. Since, the spot prices rose slightly and the effect was seen in the MCX futures prices too. Therefore, it closed the day with a gain of 1.83% and settled at Rs.703/Kg.

Since couple of days, we are seeing that the arrivals are on a same note at the key physical market of Uttar Pradesh. According to market sources, we feel that farmers are not selling their stocks, because they might face huge losses at the current price level. Therefore, the supplies coming to the market have been very limited. On intraday basis, we feel that a slight demand from domestic consumers together with the restricted supplies might support mentha oil prices in the today’s trade. By looking at the future platform and the November PVOI performance, we can observe that the price moved up with higher volumes and lower open interest. Therefore, we feel that the futures might further show short covering and eventually prices might trade on a positive mark. Hence, we are recommending buying in the lower levels for the November expiry contract during the intraday’s trade.

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