MUMBAI (Commodity Online): Expiry of January contract had a slight bearish impact on Mentha Oil prices early on. But strong demand and low arrivals kept supporting the prices as rates shot up later on in the day.
Good demand from the International markets and the domestic pharmaceutical Industries was noted.
Traders expect an overall Bullish trend to prevail in the markets as arrivals in the mandis remained moderately low.
The trend is likely to remain volatile in the short term as the higher levels too have not been sustainable. But medium term sentiments look positive on an expected pick up in demand in coming weeks.
Withdrawal of additional margins on Buy/Sell side of 5% and removal of special margin on buy side of 10% supported the market sentiments for Mentha Oil. Markets could find support at these levels from an expected rise in export and domestic demand in the coming weeks.
Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates.
Medium term Fundamentals remained moderately firm for the commodity as good pharmaceutical Industry winter season demand and further rise in export demand are expected but short term trend likely to remain volatile.
Some export queries from China and European countries reportedly supporting the market rates Reports of a fall in production had been keeping the sentiments firm.
Courtesy:Religare Commodities
