Mentha oil settled up by 0.65% at 915.8 driven by strong demand at spot markets from consuming industries. Besides, restricted arrivals from Chandausi in Uttar Pradesh too influenced mentha oil prices. At Bareilly market estimated market supply was at 1 Drums(1-drum-180kg), lower by 1 Drums(1-drum-180kg) as against previous day. At Chandausi market sources reported arrivals at 15 Drums(1-drum-180kg), lower by 5 Drums(1-drum-180kg) as against previous day. At Rampur market sources reported arrivals at 7 Drums(1-drum=180kg), higher by 1 Drums(1-drum=180kg) as compared to previous day. At Sambhal market total arrivals are at 100 Drums(1-drum=180kg), lower by 25 Drums(1-drum=180kg) as compared to previous day. In fact, huge carryover stocks from the previous year coupled with huge capacity built up of synthetic mint, a substitute of mentha oil, also discouraged farmers to bring less area under mentha plant this year. Trade sources estimate total area under mentha planting reported a decline of 20% to 1.75 lakh ha this season resulting into a proportionate fall in mentha oil production this year. As farmers moved towards some other cash crop as there is no compensation given to the farmers for the loss incurred. In addition, farmer pays 5%VAT plus 1.5% Mandi Tax when selling mint or mint oil. Sources indicate rates have fallen to low levels over last few weeks and further fall may be limited as domestic and export demand are expected to pick up in the coming weeks. Mentha oil spot at Sambhal closed at 1036.40 per 1kg. Spot prices is up by Rs.2.00/-.Technically now Menthaoil is getting support at 902.3 and below same could see a test of 888.9 level, And resistance is now likely to be seen at 924, a move above could see prices testing 932.3.

Trading Ideas:

Menthaoil trading range for the day is 888.9-932.3.

Mentha oil spot at Sambhal closed at 1036.40 per 1kg. Spot prices is up by Rs.2.00/-.

Mentha oil prices ended with gains driven by strong demand at spot markets from consuming industries.

Besides, restricted arrivals from Chandausi in Uttar Pradesh too influenced mentha oil prices.

At Chandausi market sources reported arrivals at 15 Drums (1-drum-180kg), lower by 5 Drums(1-drum-180kg) as against previous day.