Mentha oil gained supported by strong demand at spot market from consuming industries. Sentiment improved further on firm industrial and export demand. However, the fresh supplies in local mandies along with strong production in the current year restricted the upside. Arrivals kept getting adversely affected due to rains in growing areas in Uttar Pradesh. Production this year expected higher at more than 60000 tonnes vs ~50000 tonnes last year. Due to higher rates seen last year amidst higher demand from pharmaceutical Industries, the area under crop this year expected higher at 2.10 lakh ha vs 1.75 lakh ha last year. In Rampur, mentha oil (68 GLC) quoted at Rs 1,070 per kg, in Chandausi Rs 1,080 per kg, in Sambhal at Rs 1,080 a kg, in Barabanki at Rs 1,045 a kg. On 8th June, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 2, 157 kg of which 2, 157 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 2, 59, 192 kg of which, physical stock accounted for 2, 59, 192. Technically market is under short covering as market has witnessed drop in open interest by -0.76% to settled at 1960 while prices up 0.6 rupee, now Menthaoil is getting support at 965 and below same could see a test of 955.6 level, And resistance is now likely to be seen at 989.9, a move above could see prices testing 1005.4.

Trading Ideas:

Menthaoil spot is at 1075/-. Spot market is up by Rs. 1/-.

Mentha oil gained supported by strong demand at spot market from consuming industries.

Sentiment improved further on firm industrial and export demand.

The fresh supplies in local mandies along with strong production in the current year restricted the upside.

Higher arrivals of the new crop (~250-300 drums) in mandis from harvesting have been keeping pressure on the market sentiments.