Mentha oil on MCX settled down by -0.42% at 1036.8 amid muted demand in the domestic spot market. Further, ample stocks position on higher supplies from producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices. Pressure also seen on the speculation the area under cultivation can increase this year resulting good production. 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 Sambhal market market supply was at 70 Drums(1-drum=180kg), lower by 10 Drums(1-drum=180kg) as compared to previous day. At Bareilly market , total arrivals are at 1 Drums(1-drum-180kg), steady as against previous day’s arrival. Mentha oil spot at Sambhal closed at 1161.50 per 1kg. Spot prices was down by Rs.-7.00/-.Technically market is under long liquidation as market has witnessed drop in open interest by -3.2% to settled at 3564 while prices down -4.4 rupees, now Menthaoil is getting support at 1032.7 and below same could see a test of 1028.6 level, And resistance is now likely to be seen at 1040.8, a move above could see prices testing 1044.8.

Trading Ideas:

Menthaoil trading range for the day is 1028.6-1044.8.

Mentha oil spot at Sambhal closed at 1161.50 per 1kg. Spot prices was down by Rs.-7.00/-.

Mentha oil prices dropped amid muted demand in the domestic spot market.

Pressure also seen on the speculation the area under cultivation can increase this year resulting good production.

Further, ample stocks position on higher supplies from producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices.