Mentha oil prices likely to find strong support: Religare

Religare Retail Research's report on agri commodities

Profit booking at higher levels was noted for Mentha Oil even as winter season demand started rising in the mandis. Prices continued to find strong support at these levels. Closure of International markets kept export demand on the lower side. Domestic winter season demand from Pharmaceutical Industries however remained and supported the prices at these levels. High stocks are keeping uptrend limited.

Reports of current prices being on the lower side along with expected pick up in export and winter season domestic demand in coming weeks could ensure prices find some strong support here.

Higher production and higher stock levels have been keeping senti-ments weak for sometime. Domestic pharmaceutical Industries demand are likely to rise in coming weeks.

Banning of Gutka in some states continues having negative impact on Mentha Oil demand. Production this year expected higher at more than 60000 tonnes vs ~50000 tonnes last year.

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