With the festive season going on, low trading activities have been reported in Mentha Oil this week. Low export demand is keeping pressure on the prices. Lower arrivals at these low rates can provide support to the prices.
Lower demand in the international markets especially for the by-products is still pressurizing prices. Reports from mandi indicates that pickup in exports is not likely soon. Low trading activities are reported in mandis.
Click here to get live prices of the commodities you trade right on your mobile Overall market trend is supposed to remain moderately weak – though some bounce backs at these low levels is always possible as there are possibilities of export demand picking up at the lower levels.
Reports of good stocks with warehouses can also put further pressure on prices.
Reports indicate exporters are trying to dominate market sentiments and trying to bring down prices to pick it up at lower rates. Export demand is expected to pick up slowly as stock level is reportedly low with exporters.
Exports from China are yet to pick up due to the turmoil in the International markets and this is creating a panic in Indian markets also.
Production of mentha oil is expected at 20,000 ton this year. The production was 23,000 ton last year. The total consumption in country and abroad is expected at 27,000 ton. The rest of the consumption is likely to be met from the available stock.
Price Drivers Bullish Expectations of export demand picking up at the low rates.
The Oil production got affected due to rains.
Reports of crop damage due to rains.
Very low arrivals in the mandis.
Lower selling activity at these rates.
Absence of irrigation may lead to lower productivity.
Bearish Turmoil in the International markets keeps export demand from China low.
Fall in most agri commodity prices also has a bearish impact.
Courtesy: Religare Commodities
