Mentha oil on MCX settled down by -0.84% at 966.2 driven by easing demand at the spot market. Further, ample stocks position on higher supplies from Chandausi in Uttar Pradesh, too weighed on mentha oil prices. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper, versus 23000 of total exports last year. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks, thus whenever requirement arises, industry people will be purchasing from the farmers. This will be another bullish price driver. Indian markets had reported higher sowing for current year. Traders had estimated earlier that the total production in the range of 35000-37000 tons for this year, and currently it appears that the average estimate might be reduced to 30000 tons due to lower plantings on falling prices in the last two years. At Chandausi market estimated market supply was at 25 Drums (1-drum-180kg), up by 5 Drums (1-drum-180kg) from previous trading day. At Barabanki market estimated market supply was at 50 Drums (1-drum-180kg), lower by 100 Drums (1-drum-180kg) from previous day’s arrivals. Mentha oil spot at Sambhal closed at 1072.00 per 1kg. Spot prices is down by Rs.-7.50/-.Technically market is under fresh selling as market has witnessed gain in open interest by 1.86% to settled at 3348 while prices down -8.2 rupee, now Menthaoil is getting support at 956.9 and below same could see a test of 947.7 level, And resistance is now likely to be seen at 979.4, a move above could see prices testing 992.7.

Trading Ideas:

Menthaoil trading range for the day is 947.7-992.7.

Mentha oil spot at Sambhal closed at 1072.00 per 1kg. Spot prices is down by Rs.-7.50/-.

Mentha oil prices ended with losses driven by easing demand at the spot market.

Further, ample stocks position on higher supplies from Chandausi in Uttar Pradesh, too weighed on mentha oil prices.

Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year.