Mentha oil settled up by 1.2% at 927as domestic and export demand are expected to pick up in the coming weeks. Mentha oil production in India is likely to decline by 20% due to lower plantings of the aromatic herb on falling prices in the last two years. 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. At Barabanki market arrivals were reported at 300 Drums(1-drum-180kg), unchanged as compared to previous day's arrival. At Bareilly market total arrivals are at 2 Drums(1-drum-180kg), up by 1 Drums(1-drum-180kg) as against previous day. At Rampur market estimated market supply was at 6 Drums(1-drum=180kg), down by 1 Drums(1-drum=180kg) from previous day's arrivals. At Sambhal market estimated market supply was at 100 Drums(1-drum=180kg), lower by 25 Drums(1-drum=180kg) as compared to previous day. At Chandausi market estimated market supply was at 10 Drums(1-drum-180kg), down by 10 Drums(1-drum-180kg) from previous trading day. Mentha oil spot at Sambhal closed at 1048.70 per 1kg. Spot prices is up by Rs.11.50/-.Technically now Menthaoil is getting support at 917.5 and below same could see a test of 907.9 level, And resistance is now likely to be seen at 934.3, a move above could see prices testing 941.5.

Trading Ideas:

Menthaoil trading range for the day is 907.9-941.5.

Mentha oil spot at Sambhal closed at 1048.70 per 1kg. Spot prices is up by Rs.11.50/-.

Mentha oil prices ended with gains as domestic and export demand are expected to pick up in the coming weeks.

Mentha oil production in India is likely to decline by 20% due to lower plantings of the aromatic herb on falling prices in the last two years.

At Sambhal market estimated market supply was at 100 Drums(1-drum=180kg), lower by 25 Drums(1-drum=180kg) as compared to previous day.