Mentha oil on MCX settled down by -0.99% at 1026.5 tracking muted demand from consuming industries at the spot market. Further, higher supplies from major producing belts of Chandausi in Uttar Pradesh also fuelled the downtrend. Pressure also seen on prices on the speculation the area under cultivation can increase this year resulting good production. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. 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 arrivals were reported at 25 Drums(1-drum-180kg), up by 10 Drums(1-drum-180kg) from previous trading day. Mentha DMO is offered lower at Rs. 825 per Kg, down by 1.79 per cent as compared to previous day. Mentha Crystal at Chandausi market is offered weak at Rs. 1215 per Kg, down by 0.82 per cent as compared to previous day. Mentha oil spot at Sambhal closed at 1154.50 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 -3.93% to settled at 3424 while prices down -10.3 rupees, now Menthaoil is getting support at 1020.7 and below same could see a test of 1014.8 level, And resistance is now likely to be seen at 1034.5, a move above could see prices testing 1042.4.

Trading Ideas:

Menthaoil trading range for the day is 1014.8-1042.4.

Mentha oil spot at Sambhal closed at 1154.50 per 1kg. Spot prices was down by Rs.-7.00/-.

Mentha oil ended with losses tracking muted demand from consuming industries at the spot market.

Further, higher supplies from major producing belts of Chandausi in Uttar Pradesh also fuelled the downtrend.

At Chandausi market arrivals were reported at 25 Drums(1-drum-180kg), up by 10 Drums(1-drum-180kg) from previous trading day.