May mentha oil contract on the Multi Commodity Exchange is seen down Rs 10-15 per kg in the next two to three trading sessions on low demand and expectation of a better output this year, dealers and analysts said. The contract is currently trading at Rs 447. | |
| A Bangalore-based analyst said mentha oil output in the current year is expected to be substantially higher that last year, provided the weather remains conducive till harvest. |
| |
| Mentha crop is usually sown in March and harvested from May-end onwards. Last year's production is estimated at about 21,000 tonne. |
| |
| Dealers said the demand is also low as industrial buyers are deferring purchases, waiting for prices to fall after the new harvest. |
| |
| A Delhi-based dealer said not much volatility is expected in the May contract in the next few days as volumes are usually thin during April-May owing to poor demand from industrial buyers. |
| |
| He said scattered retail and export demand may, however, lead to partial recovery in the MCX May contract to Rs 460 per kg next month. |
| |
| Though arrivals in the spot markets are extremely thin, MCX warehouses still have over 2,706 tonne of mentha oil. |
| |
| So, if some demand was to emerge, industrial buyers would turn to the exchange for deliveries, which could push up the May contract, the dealer said. |
| |
|
| |
