Mentha Oil rate MCX & Live chart
The real-time Mentha Oil rate of MCX and its live chart has been given below. You can select the desired timeframe. You can also perform various functions on the chart with the help of so many technical tools and indicators.
Mentha Oil Contract Specifications
To trade any commodity, you have to know its basic details about its contract. The Basic specifications of Mentha Oil contract are given below in the table.
Symbol | MENTHAOIL |
Description | MENTHAOILMMMYY |
| Base Symbol | MMO |
Type | Commodities |
Group | Agriculture |
Unit | 1 kilogram |
Contract size | 360 kg |
Tick Size | 10 paise |
Tick Value | 36 |
Point value | 1 = 36 Rupees |
1-year change | -18.35% |
Contract start day | 1st day of contract launch month |
Last Trading day | the expiry date of the present launch month |
Contract listing | Contracts are available as per the contract launch calender |
Trading period | Monday to Friday |
Trading Timings | 10 A.M. to 5 P.M. |
Instrument type | Commodity Futures (FUTCOM) |
Initial Margin | Minimum 4% or based on SPAN |
Trading in commodity Mentha Oil
The price of Mentha Oil and its derivative are very volatile in India. You can trade in Mentha oil with contracts available in MCX.
You have to be careful before trading or investing in Mentha Oil. Since India is the largest exporter of this Oil, the prices of Mentha oil fluctuates significantly.
Before investing in Mentha Oil and its derivatives, you need to take care of the favourable climatic conditions to grow the crop. When the conditions are not good, Farmers are not able to produce Mentha Plant in large quantities.
When some big traders do the hoarding of the Mentha oil, the price of this oil changes a lot. The cost of manufacturing components like distilleries, filtering equipments etc. also affects its price.
You also need to know the conditions of other commodities such as gold, silver, copper etc. because after all, they all affect the prices of each other.
Mentha Oil Rate trends and Projections
Basic Analysis
If we talk about the trend of Mentha Oil, after hitting the all-time high of 2564.8 Rupees in March 2012, it showed huge bearish pressure and heavy downtrend and went to hit the swing low of 652.2 Rupees in September 2014. Since then, Mentha Oil rate is ranging between these two values. It hasn't passed these swing highs and swing lows.
Mentha Oil spent 3 years(2014-2017) in the range between 650 Rupees and 1150 Rupees. Then, it broke this range in October 2017 and went to hit the swing high of 1990.8 Rupees in December 2017 and it again came back to 1150s in the next six months.
Mentha oil showed very volatile nature and it is very hard to trade or invest in Mentha oil commodity. You have to be very careful before investing in such type of volatile financial instruments.
If we talk about the monthly time frame of Mentha Oil, it is making higher highs and higher lows, it means it is in the uptrend. There is a strong support zone between 1050 - 1200 Rupees. In this zone, Mentha Oil has found great support.
Right now, this commodity is making higher highs and higher lows on a trendline, it is indicating that it may rise in value in upcoming years.
Advanced Analysis
If we focus on the advanced technical analysis of the Mentha Oil, a potential bullish butterfly pattern(Harmonic Trading pattern) has formed in its monthly chart. The last leg CD of this butterfly pattern will complete around 570 Rupees. The last leg is the 1.27 Fibonacci extension of XA leg.
This butterfly pattern is an extension harmonic pattern. These patterns have a very good probability of being right. If the price of Mentha oil falls further, you may make a long position around 570 Rupees.
One more Harmonic pattern is forming in the monthly chart of the Mentha Oil i.e. a potential bearish Gartley pattern. The last leg CD of this Gartley Pattern will complete around 2170 Rupees. The last leg is the 0.786 Fibonacci retracement of XA leg.
This Gartley pattern is a retracement Harmonic pattern. If the Mentha oil rises further, you may take a short position around 2170 Rupees area with the Stop loss just above the A point on the chart i.e. 2570 Rupees.
General description of Mentha Oil
The scientific name of the source of Mentha herb source is Mentha Arvensis. Mentha is an aromatic herb. In India, the Mentha is known as "Pudina" which is a Japanese name. It is also known as Mint.
When the steam distillation and filtration of dried leaves of Mentha are done, the Mentha Oil is produced. Along with Mentha Oil, other products like Menthol, peppermint and many other derivatives are also produced.
If we look at the chemical composition of Mentha Oil, this oil is composed of Menthyl acetate, Limonene, Iso-menthanol, Menthanol, isomenthone, cineole, Beta-pinene and beta-caryophyllene.
The derivatives of Mentha are commonly used in food manufacturing, pharmaceutical industry, Perfume industry and flavouring industry. Mentha leaves are also used in curing respiratory diseases, inflammation, digestive disorders etc.
Due to the special qualities of Mentha leaves, it is a primary component of various medicines used curing different sort of disorders or diseases.
History of Mentha Oil
The Regional Research Laboratory introduced the Mentha leaves(Mentha Arvensis) in India between 1958 - 1964 AD. The Mentha oil was to India from Japan.
The Central Institute of Medicinal and Aromatic Plants(CIMAP) introduced new strains that improved Oil yields in the 1980s.
India has increased the production of Mentha oil with time. In 1996, India was producing 6000 tonnes of Mentha Oil and its production surpassed 45,000 tonnes by 2013. In 2019, the production of Mentha oil was about 48,000 - 50,000 tonnes.
India is the largest producer of Mentha Oil in the world. Uttar Pradesh(U.P.) is India's largest Mentha Oil producing state. UP also produces 80% of Mentha Oil in the world. India is also the largest exporter of Mentha Oil and its derivatives.
Production of Mentha Oil
For the best growth of Mentha herb, the tropical and sub-tropical climate is needed. It is the perennial crop means it can grow throughout the year and the best months for its harvesting are May to July.
As you know that India is the largest producer of Mentha oil and Mentha Arvensis in the world. The other major producers of the Mentha oil are China, USA and Brazil.
In India, UP is the largest producer of Mentha Oil. Some other Mentha Oil producing states of India are Himachal Pradesh, Punjab, Haryana and Bihar. The total Mentha Arvensis producing area of India is 1,25,000 hectares.
Chandausi, which is situated in UP, is the largest Mentha Oil-producing district of India and also of the world.
Many countries use Mentha Oil and Mentha Arvensis for the food industry, pharmaceutical industry, perfume industry, for manufacturing cosmetics, insecticides etc. So these countries have to import Mentha Oil from India.
The major importers fo the Mentha Oil are Japan, USA, Brazil, Argentina, Germany, France, UK etc.
How is Mentha Oil produced?
The steam distillation of the dried leaves of the Mentha plant is done to obtain the Mentha Oil. When we do the steam distillation and filtration of the flowering tips and dried leaves of the Mentha plant, golden yellow oil is obtained. This is done on the flowering stage of the Mentha Plant.
To obtain the Mentha oil, herbs are transported to the Distilleries. After this, the distilled oil is sent to the crystallisation unit where the Menthol is segregated from the Mentha Oil.
This golden yellow oil is composed of 50% Menthol and 50% dementholised oil. The percentage of both these components depend upon the variety of the herb used.
Instead of the Steam distillation of the Mentha plant, you can also use Field distillation and hydrodistillation.
Significance of Mentha Oil
Mentha Oil has got its importance due to its incredible medicinal qualities. Due to these qualities, It is a very essential component for Pharmaceutical companies. Mentha Oil has lots of great medicinal properties like antiseptic, anti-microbial and anti-bacterial qualities.
Due to its phenomenal flavouring qualities, Mentha Oil is also used in the food industry and flavouring industries. It has a very decent smell, therefore it is also used in perfume industries.
Consumption: The price of Mentha Oil also depends upon the consumption of Mentha Oil across the country and the world.
Typically, the demand of Mentha oil increases in the winter season and its price decreases in the summer season. This is so because of the high demand of the pharmaceutical companies in the winter.
To buy Mentha oil, click on the images below:
Factors affecting the price of Mentha Oil
The price and production of Mentha Oil depend on various international and domestic factors. Some of the major factors are given below:
Global Factors
Global Demand: There are many countries which don't produce Mentha Oil in large quantities, so they import from other countries like India.
Eventually, the price of Mentha Oil depends on the price of prominent importers like China, USA, European countries, Singapore etc. If the demand for these countries changes, the price of Mentha oil will also vary.
For example, if the trade war between USA and China sustains, then both the countries will decrease the import of Mentha oil from India. The price of Mentha oil will change drastically during this trade war between China and USA.
Price of Artificial Mentha oil: Mentha Oil can also be produced artificially or synthetically. The artificial Mentha Oil is a little bit cheaper as compared to the natural one.
So, if the price of artificial Mentha Oil varies, the price of Natural Mentha oil also change.
Currency rate with Dollar: Since the prices of all the commodities vary with the change in the value of the currency and the price of Mentha Oil is no different, it also depends on the change of the USD-INR currency pair.
Domestic Factors
Climatic Conditions: The weather conditions are very important for the cultivation of Mentha herb. Whenever the Climatic conditions get worse, the prices of Mentha Oil and its derivatives increase.
The cold waves and heavy rains are not good for the cultivation of Mentha Oil. The yield of the Mentha herb decreases significantly during the cold waves and heaving rains.
Stock conserved: The price of the Mentha oil and its derivatives also depends upon the available stock of Mentha herb. When there is enough stock available, the price of Mentha Oil remains controlled.
If there is not enough stock of Mentha herb available, the demand will overcome the supply and eventually, the price of Mentha herb and its derivative will increase.
Typically, the demand of Mentha oil increases in the winter season and its price decreases in the summer season. This is so because of the high demand of the pharmaceutical companies in the winter.
How to buy Mentha Oil?
If you want to trade Mentha Oil, you can trade it by opening a trading account with a brokerage company like Zerodha, Angel Broking, Share Khan etc. The main exchange where the Mentha oil trades is MCX in India.
If you want to buy the Mentha Oil to use it. You can buy it at any grocery or medical shop. You can also buy this online at any E-commerce website.
To buy Mentha oil, click on the images below:
