Mentha Oil Rate Today: There is no improvement in demand of mentha oil in the spot market. Mentha Oil’s industrial demand is also very sluggish. Due to this, there is pressure on prices. Most of the days of this month have seen weakness in Mentha. In Friday’s trade, Mentha is trading at a level of Rs 941, weakening by about Rs 2. On Thursday, it settled at 943.2 rupees per kg with a weakness of 0.27 per cent. On Wednesday, mentha was down marginally by 0.03 per cent and closed at Rs 945.8 per kg. Experts say that due to weak sentiments, investors have kept distance from mentha. Demand will increase only after winter.
Ajay Kedia, director of Kedia Advisory, says Mentha has broken down around 25 percent this year. Shopping from lower levels is still not available. It has been seen in the survey that the sales of the worldwide cosmetic and toiletries company have decreased. This has weakened Mentha’s demand. Domestic demand is also not improving due to Covid 19. Because of this Mentha remains in a limited range amidst constant fluctuations. Sentiments do not appear to be strong until the first of next year. Further, companies like Pharma, Cosmetic and FMCG are expected to receive the demand in the winter.
How to trade in Mentha
Ajay Kedia, director of Kedia Advisory, says that if we talk today, Mentha has support on the downside at Rs 939.3. If this price breaks, Mentha can break down to Rs 935.4 and then to Rs 929.3. At the same time, there is a resistance at Rs 949.3 upwards. If it breaks the price then it can be strong up to Rs 955.4 and then Rs 959.3. He says that buying in October futures around 935 rupees is advisable. Make a target of Rs 960 in 2 to 3 trading days.
Mentha’s Industrial Use
Mentha oil is most used in pharma industry, cosmetics industry, FMCG sector as well as confectionery products. India is the world’s largest mentha oil producer and exporter. The highest yield of mentha oil is in UP. UP accounts for about 80 percent of the total mentha oil production in the country.
In the previous season, mentha oil production was very high. According to market sources, this year, yields can be between 40,000-56,000 tonnes, staying 40 per cent higher. Due to this, the availability of mentha was very high and the prices could not rise much. About 75 percent of mentha oil produced in the country is exported. Therefore, more foreign demand than domestic plays a big role in fixing prices.
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