Menthaoil rules markets

Updated: Nov 17 2005, 05:30am hrs
The markets continue to witness the giles and splendour of its newfound hero for the third day in a row as the commodity continued its remarkable surge to prominence. Mentha oils surge has caught everyone by surprise as the commodity, since its launch a couple of months ago, was lurking behind. But increase in exports and an expected drop in the produce has left the commodity to be talked in the same breadth as that of crude oil and silver. The all-important thing is that mentha oil is there to stay in the commodity markets in the days to come. Urad, its partner on its way to fame yesterday, gave good company to it during early trading but soon lost its momentum during the later half and ended the day in red and that was after gaining nearly Rs 100.

Market watch

Guarseed and gum has been threatening a breakout for days now and showed glimpses of doing that for the third time during the last fortnight. The commodity looks strong fundamentally and even technically speaking is expected to break free in the recent future.

According to the Rajasthan agricultural ministry, guar production in the state is estimated to be around 4.25-4.75 lakh tonnes this year, well below the governments target of 6 lakh tonnes.

The traders on the other hand estimate an even lower crop output. Guarseed futures NCDEX surpassed previous advances following a slightly firm opening in early trading. However, increased selling pressure at those levels pushed futures in to negative territory again.

Spices with the exception of Jeera failed to consolidate as it slipped down further. Pepper prices that were at the technical support levels the previous day failed to make further progress.

Courtesy: Geojit Commodities Ltd