Mentha oil on MCX settled down by -0.68% at 959.6 on late profit booking after prices gained amid increasing demand in the domestic spot market. Further, tight stocks position on fall in arrivals from producing belts limited the downside. As per local sources, during last three weeks around 20 percent arrivals have decreased in the spot markets which will support the mentha prices. According to sources, fears of lower output and rising demand hoarders have started hoarding mentha oil. Exports of mint products stood at 21,150 tonne in FY16 valued at RS. 2,577.59 crore against 25,750 tonne valued at RS. 2,689.25 crore in FY15. Mentha oil prices have fallen almost more than 11% since last 1month from 992.80 level to test 880 level this week due to the fund crisis in the market and lower Chinese demand for Indian Mentha oil. Initially, India's mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year. At Chandausi market estimated market supply was at 15 Drums(1-drum-180kg), down by 10 Drums(1-drum-180kg) from previous day's arrivals. Mentha DMO is offered firm at Rs. 850 per Kg, higher by 6.25 per cent as against previous day. Mentha Flakes at Chandausi market is quoted weak at Rs. 1130 per Kg, down by 3.42 per cent as against previous day. At Barabanki market sources reported arrivals at 30 Drums(1-drum-180kg), down by 20 Drums(1-drum-180kg) from previous trading day. Mentha oil spot at Sambhal closed at 1071.90 per 1kg. Spot prices is down by Rs.-0.10/-.Technically now Menthaoil is getting support at 950.4 and below same could see a test of 941.1 level, And resistance is now likely to be seen at 973.6, a move above could see prices testing 987.5.

Trading Ideas:

Menthaoil trading range for the day is 941.1-987.5.

Mentha oil spot at Sambhal closed at 1071.90 per 1kg. Spot prices is down by Rs.-0.10/-.

Mentha oil prices dropped on late profit booking after prices gained amid increasing demand in the domestic spot market.

According to sources, fears of lower output and rising demand hoarders have started hoarding mentha oil.

At Chandausi market estimated market supply was at 15 Drums(1-drum-180kg), down by 10 Drums(1-drum-180kg) from previous day's arrivals.