MUMBAI (Commodity Online): Mentha Oil traded with high volatility as the higher levels could not be sustained and profit booking was seen at the higher levels after the rise in rates seen the earlier day. Moderate demand has been noted in the mandis with traders expecting the demand to rise in coming days.
A rise in demand expected in coming weeks along with a fall in arrivals are likely to keep sentiments moderately firm for the commodity in the medium term though short term trend is likely to remain volatile.
Reports of a fall in production had been keeping the sentiments firm. Rains in growing areas in UP too had been having a Bullish impact on the market sentiments as it affected the Oil extraction process adversely. However effect of rains may not be significant now but indications that production prospects may be lower than the previous estimates could perk up prices further.
Lower arrivals and rising export demand and domestic demand from the Pharmaceutical Industries have been there.
Rains in growing areas could have short term Bullish impact on the price movement for Mentha as traders are not ruling out a fall in production from the higher figures projected some time back.
Expected rise in export and domestic demand from pharmaceutical Industries are likely to provide support to prices in the medium term –as per traders. Exports to China reportedly on the rise as per traders.
Sowing area across UP likely to touch 2.48 lakh ha. Production expected 77 lakh tonnes – as per UP Horticultural dept. From 1 ha, 100 litre Mentha Oil can be extracted.