MENTHA OIL

Menthe oil July contract at MCX hit 2nd day upper freeze of 4% after estimates that 20% of Mentha crop affected from recent rains, lower carry over stock of last year and falling exchange inventory and oil recovery might fall by atleast 15-20% from mentha leaves. After heavy rains last week it may damage standing crop to the extent of 15-20% and also affects oil recovery from mentha leaves by atleast 15-20% added by futures continue to trade in discount against spot prices. Record high Crude prices also supports natural mentha prices as synthetic mentha will expensive in the world market.

At Chandausi, a major mentha trading hub, stockiest & farmers held back the oil in anticipation of higher prices, support prices from sharp fall while local traders and exporters did not buy, expecting prices to fall due a bumper crop this year. Over 70% of mentha oil production is exported and a strong rupee has severely impacted realization from exports.

Mentha oil continues to fall after traders revised the mint crop production target estimates upward around 35,000 tons from earlier 31,000 tons. All this added by double MCX warehouse stock in this month from 630,615 kgs on 1st Sep to 17,09,554 kgs as per latest data.

Current year menthe crop estimated ard 30,000-35,000 tones against 18,000 tons last year, almost 70% jump from last year production. Menthe oil is mainly uses in drugs, cosmetics and body care products.