MUMBAI (Commodity Online): With expiry for July contract nearing, trend remained sideways for Mentha Oil. There are expectations however of demand picking up at these low levels that can support the prices in the coming days.

With volumes and OI shooting up in the Futures market and increased trading activities noted in the physical markets, one can witness high volatility in the coming days for Mentha Oil that had remained quiet over the last few weeks.

Expected fall in production is likely to keep sentiments up for Mentha in the medium term. Traders are also reportedly holding back stocks in anticipation of a rise in price in the coming weeks.

Traders hold a bullish overview in the medium term on expected further pickup in domestic and export demand at lower levels. The trading activities are expected to rise in coming weeks with domestic demand expected to increase at lower levels.

Falling export demand from US and EU have been pressurizing prices and exporters have reportedly been waiting for dips before initiating fresh query. Expectations of lower production and rising export demand from China are expected to provide support to the prices.

Courtesy: Religare Commodities

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