Menthaoil on MCX settled down -0.64% at 972.2 on profit booking 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. Trade sources estimate that total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season resulting into a proportionate fall in Mentha oil production this year. However, a pick up in sowing over last couple of weeks have ensured prices falling for the commodity, as low demand further pressurized market sentiments. As per latest reports Mentha Oil export in 2014 -15 has surpassed targeted 21000 tons by 23% at 25750 tons. Export in 2013-14 was 24500 tons. Higher carryover stocks and lack of strong demand prevented strong upside movement during that period. At Chandausi market sources reported arrivals at 10 Drums(1-drum-180kg), lower by 5 Drums(1-drum-180kg) from previous trading day. Mentha DMO is offered strong at Rs. 810 per Kg, higher by 1.25 per cent against previous trading day. Mentha Flakes at Chandausi market is quoted firm at Rs. 1150 per Kg, higher by 0.44 per cent from previous day. At Barabanki market arrivals were reported at 50 Drums(1-drum-180kg), up by 20 Drums(1-drum-180kg) from previous trading day. At Sambhal market estimated market supply was at 100 Drums(1-drum=180kg), lower by 25 Drums(1-drum=180kg) as against previous day. Technically market is under fresh selling as market has witnessed gain in open interest by 0.34% to settled at 3590 while prices down -6.3 rupee, now Menthaoil is getting support at 963.4 and below same could see a test of 954.5 level, And resistance is now likely to be seen at 986.8, a move above could see prices testing 1001.3.

Trading Ideas:

Menthaoil trading range for the day is 954.5-1001.3.

Mentha oil spot at Sambhal closed at 1059.70 per 1kg. Spot prices is down by Rs.-3.30/-.

Mentha oil dropped on profit booking driven by easing demand at the spot market.

Trade sources estimate that total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season.

At Barabanki market arrivals were reported at 50 Drums(1-drum-180kg), up by 20 Drums(1-drum-180kg) from previous trading day.