Menthaoil settled down -0.71% at 829 on comfortable carryover stocks in local mandies, favorable crop conditions and expectations of higher production from the major producing belts. However, good demand from consuming industries limited further losses in mentha oil prices. However, favorable crop conditions and higher production prospects also weighed on mentha oil prices. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. Sources estimated that the current year mentha oil production will be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries. The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year. India's production of mentha oil may touch 60000 tons this year.  Technically market is under long liquidation as market has witnessed drop in open interest by -0.5% to settled at 5808 while prices down -5.9 rupee, now Menthaoil is getting support at 825.3 and below same could see a test of 821.5 level, And resistance is now likely to be seen at 834.9, a move above could see prices testing 840.7.

Trading Ideas:

Menthaoil trading range for the day is 821.3-840.5.

Menthaoil spot is at 940/-. Spot market is down by Rs.3/-.

Mentha oil edged lower on comfortable carryover stocks in local mandies and favorable crop conditions

However, good demand from consuming industries limited further losses in mentha oil prices.

The current year mentha oil production will be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes