Mentha oil futures corrected on consecutively for the third day on Thursday hitting the 4% circuit breaker on account of selling seen at higher levels and increasing the arrivals due to liquidation of stocks at the end of the current marketing year and of reports that the acreage may increase for the next marketing year by around 20% on higher realisation. The spot as well as the futures settled lower by 2.73% and 4%, respectively.
Total special cash margin of 25% on the long side has been imposed on all contracts of mentha oil from March 9, 2012. For detailed reference please refer to the Circular No: MCX/T&S/074/2012 dt 06/03/2012.
Production, Arrivals And Exports
According to market sources, sowing of mentha in Western UP is expected to increase by 30% as compared to last year, while sowing in all regions is expected to increase by 20%.
Arrivals in entire UP stand around 130 drums (1drum – 180 kgs) daily. Exports of mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year.
NCDEX Chili Gains On Fresh Buying, Jeera Bounces Back
NCDEX Chili settled up by more than 2 percent mainly on account of fresh buying at lower price level and weak arrivals in the spot market. While NCDEX pepper settled steady due to steady arrivals in the Vietnam in the spot market. The 4% additional margin imposed in the pepper May contract on the Long side has been withdrawn with immediate effect.
NCDEX jeera futures bounced back from the previous losses on short covering and fresh buying lead by weak arrivals in the spot market. NCDEX turmeric settled up due to weak supply and fresh buying at lower price level in the market.
NCDEX Chana Rises On Poor Pulses Production Estimates
NCDEX chana May contract settled up by more than 1.50 percent because government estimated poor pulses production in the current year which is expected to go up to Rs.4000 in next couple of days after April month i.e. Arrivals period so viewed will be “buying on dips.”
As per latest release from government, India's total pulses production in the current year is estimated at 17.02 million tonnes, down almost 6.86% from the last year. This is mainly due to poor sowing in kharif sowing and crop damage in Rabi season.