Indian Commodities: Mentha Oil, Wheat Rise Due to High Demand

Prices of agricultural commodities in India rose on Tuesday as speculators take positive cues from spot market on surging demand.

On the India's Multi Commodity Exchange (MCX), the Mentha oil for April’s delivery advanced Rs 5.90 ($0.090) or 0.41 percent, to Rs 1,448 ($22.05) per kilogram, in a business turnover of 80 lots.

Also, the oil for May’s delivery rose Rs 3.30 ($0.050) or 0.25 percent, to Rs 1,332 ($20.29) per kilogram in 64 lots.

Several marketmen said that the building of positions by participants on the back of strong demand from consuming industries in the physical market against restricted supplies from Chandausi kept Mentha oil prices higher at trade futures.

Wheat prices traded higher today at 0.36 percent to Rs 1,635 ($24.92). According to the National Community and Derivatives Exchange, the wheat for May’s delivery edged higher to Rs 6 ($0.091) per quintal, with an open interest of 2,100 lots.

Analysts said that the fresh positions created by traders due to improved demand in the physical market, amid a pause in arrivals, affected wheat prices in the trade.

Palm Oil, Cottonseed Oil Cake Slips

On the other hand, the crude palm oil for May’s delivery traded lower at 0.42 percent to Rs 638.50 ($9.72) per 10 kilograms in a business turnover of 122 lots. Similarly, the oil for April’s delivery slid Rs 2.30 ($0.035) or 0.36 percent, to Rs 633.80 ($9.65) per 10 kilograms in 123 lots.

Analysts said that the increased crude oil prices on the trade futures resulted from the offload of positions by traders in tandem with a weak trend overseas, amid easing demand in the physical market.

The effect of the Indian government’s import duty increase for palm oil to 44% from 30%, which took effect on March 1, might also affect the current price and demand for the commodity.

Cottonseed oil cake prices also slid 1.01 percent or Rs 14 ($0.21), to Rs 1,376.50 ($20.98) per quintal, with an open interest of 3,720 lots. Market experts said that the commodity’s downtick is due to the sluggish demand for animal feed makers amid ample stocks on the steady inflow of arrivals in spot markets.

HQBroker is here to give you a daily news roundup about the forex, commodities, technologies, automobiles, and economies. You can create an account now and make yourself updated with essential news in the market. Share your thoughts and experiences with us by commenting your HQBroker reviews.