MUMBAI (Commodity Online): Mentha Oil rates failed to recover much as demand got affected in the mandis and exporters waited for further dips before initiating fresh demand in the mandis. Elections in UP too reportedly affected the trading prospects as per traders.
Trend in Dollar vs Re could also affect the short term market sentiments as weakening Dollar could affect the export rates adversely.
But possibility of a rise in demand at the lower levels and low arrivals are expected to support the prices.
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.
Courtesy:Religare Commodities
