Selling prevailed in menthe oil market with the anticipation of fresh sowing to commence in some parts of Uttar Pradesh along with comfortable stocks in local mandies . The MCX futures pared 1.5% today.
Mentha oil cultivators suggested that the fresh sowing of mentha will commence from February onwards in some parts of Uttar Pradesh. This will commence after the harvesting of early variety of mustard seed crop in areas such as Rampur, Chadausi and Moradabad. Cultivators also eyed for strong mentha oil sowing in the current year as spot prices of menthe oil were trading around Rs 1400-1600 per kg throughout the marketing season.
Moreover, strong carryover stocks of mentha in local mandies also encouraged stockiest selling from higher levels. Traders estimated the total stocks of around 14-15 thousand tonnes of mentha oil are currently available in local mandies.
The MCX Mentha oil January futures pared Rs 22 per kg to close at around Rs 1381 per kg today. The MCX Benchmark contract added 400 contracts in open interest indicating fresh short positions by traders and speculators.
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