India Mentha Oil To Decline on Profit Booking .

MUMBAI (Commodity Online):Movement in both directions was seen but finally market closed with a negative note due to profit booking by the buyers. Volumes increased however open interest fell in the December contract.

Withdrawal of additional margins on Buy/Sell side of 5% and removal of special margin on buy side of 10% supported the market sentiments for Mentha Oil.

Markets could find support at these levels from an expected rise in export and domestic demand in the coming weeks.

Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates.

Medium term Fundamentals remained moderately firm for the commodity as good pharmaceutical Industry winter season demand and further rise in export demand are expected but short term trend likely to remain volatile.

Some export queries from China and European countries reportedly supporting the market rates.Reports of a fall in production had been keeping the sentiments firm.

Lower arrivals and rising export demand and domestic demand from the Pharmaceutical Industries have been there. Exports to China reportedly on the rise.

Source : commodityonline.com