Mentha oil settled up by 0.24% at 906.8 as there are expectations of some recovery in market sentiments as winter season demand starts on the export and domestic front. With cooler winters anticipated for many parts of India this year, the demand may soon start picking up from the pharmaceutical sector. Global demand too is expected to rise at these lower levels in coming weeks. At Rampur market sources reported arrivals at 5 Drums(1-drum=180kg), lower by 2 Drums(1-drum=180kg) from previous day's arrivals. At Barabanki market total arrivals are at 200 Drums(1-drum-180kg), higher by 50 Drums(1-drum-180kg) as against previous day. At Sambhal market total arrivals are at 70 Drums(1-drum=180kg), up by 20 Drums(1-drum=180kg) as against previous day. At Chandausi market estimated market supply was at 20 Drums(1-drum-180kg), up by 5 Drums(1-drum-180kg) from previous trading day. 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. Mentha oil spot at Sambhal closed at 1026.70 per 1kg. Spot prices is down by Rs.-1.10/-.Technically market is under fresh buying as market has witnessed gain in open interest by 11.54% to settled at 9595, now Menthaoil is getting support at 899.7 and below same could see a test of 892.7 level, And resistance is now likely to be seen at 911.1, a move above could see prices testing 915.5.

Trading Ideas:

Menthaoil trading range for the day is 892.7-915.5.

Mentha oil spot at Sambhal closed at 1026.70 per 1kg. Spot prices is down by Rs.-1.10/-.

Mentha oil prices gained as there are expectations of some recovery in market sentiments as winter season demand starts on the export and domestic front.

With cooler winters anticipated for many parts of India this year, the demand may soon start picking up from the pharmaceutical sector.

Global demand too is expected to rise at these lower levels in coming weeks.