Gold Silver Reports ~ Mentha oil on MCX settled down by -0.8% at 895.6 driven by subdued demand from consuming industries at spot market. Further, adequate stock positions on account of higher supplies from major growing regions of Chandausi in Uttar Pradesh, also influenced mentha oil prices. However downside seen limited in the anticipation that current year production can slip more that 35% due to lower plantings on falling prices in the last two years.
As per market survey the 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. Prices had significantly dropped since last 6months and prices traded in the range as demand from consuming industries is mute against steady arrival from spot market of Chandausi in Uttar Pradesh which is keeping prices within a range. Major buyers like China and Japan because of its economic slowdown have reduced their buying quantity of mentha and its product. On the other hand, ban on gutka and increased supply of synthetic mentha oil in the global market has increased due to which mentha prices are decreasing in the market.
Spices Board said that the bulk of the export is in the form of crystallised menthol. Meanwhile support also seen from the latest reports showing Mentha Oil export in 2014-15 has surpassed targeted 21000 tons by 23% at 25750 tons. Mentha oil spot at Sambhal closed at 1046.70 per 1kg. Spot prices is down by Rs.-4.40/-.Technically market is under fresh selling as market has witnessed gain in open interest by 0.68% to settled at 7297 while prices down -7.2 rupee, now Mentha oil is getting support at 878 and below same could see a test of 878 level, and resistance is now likely to be seen at 904.9, a move above could see prices testing 916. ~ Neal Bhai Reports