Saturday, July 5, 2008

Market Speak: Mentha Oil Deals In Upper Circuit - July 5, 2008

Amidst unavailability of exchange quality of stock in domestic market along with spate of news related with heavy rainfall in Uttar Pradesh resulted to strong speculation in mentha oil futures.

As per market, heavy rainfall in major growing areas of mentha such as Barabanki, Chandausi and Rampur resulted to around 40% of the crop damage in the current year.

As per latest released from IMD , Western Uttar Pradesh has received the total rainfall of around 194 mm so far against the normal rainfall of around 85 mm . This resulted to serious damage to the standing crop of mentha . The oil recovery from mentha is now restricted to around 3-4 kg against 6-7 kg reported last year from one bigha.

Therefore, on the account of restricted supply from mentha oil , prices have been spurted by more than Rs 90 per kg in last one week in all future contracts of MCX.

No comments: