Why analysts are shy of the volatile mentha oil

It was as if no analysts have heard about it, let alone track it!

The culprit in question is mentha oil, a hotly traded commodity that is notorious for its volatility.

The commodity has emptied many a wallets as it has filled! A commodity with wide range of pharmaceutical and industrial application, mentha oil is cultivated in India in the states of UP, Punjab, Haryana, Himachal and Bihar.

India produced close to 35,000 tons of mentha oil in 2009-10. The country is touted as the largest producer and exporter of mentha oil.

All this for your information!

Now coming back to the topic: Why commodity analysts are not keen on mentha oil?

I personally had rung a few commodity experts to get their comments on mentha oil the other day for a story.

And the reply from the expert was that the fundamentals are not being tracked on a daily basis!

As I told above, mentha oil, though traded in large volumes, has been negatively portrayed as a commodity that has made many wallets empty. A trader at the terminal emptied his feelings in words that have been uttered many times before: “The commodity is too volatile...”

What is making mentha oil this volatile is the next question...

The commodity tracks the prices of crude oil!

When the crude oil basket is up, mentha oil exhibits an uptrend and when crude oil is down; mentha oil is down.

Now, the eternal question:

If mentha oil is a loss making enterprise, if it is too volatile, then doesn’t it deserve better attention? A look at the historical charts would tell you how the volume in the trade of the commodity is surging.

If that be the case, how brokerages with their legion of analysts are able to trade in mentha oil, without proper analysis?

How is it possible on the part of the investors to entrust an advisory with trading in mentha oil?

Come on, this is not fair!

If you really intend to trade, if you really use the investors’ money in trade, you have a responsibility.

And that requires extensive learning and tracking of the commodity!

It’s time the analysts start on with their text books and crunch some facts and figures! Let mentha oil be the starting point!

As published in: http://www.commodityonline.com/news/Why-analysts-are-shy-of-the-volatile-mentha-oil-37439-3-1.html