Menthaoil settled up 0.34% at 829.1 as fresh buying support from pharmaceutical units due to tight stocks position in the physical market along with lower arrivals from Chandausi in Uttar Pradesh. However, favorable crop conditions and expectations of higher output from the major producing belts capped the gains to some extent. 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 short covering as market has witnessed drop in open interest by -0.58% to settled at 5791 while prices up 2.8 rupee, now Menthaoil is getting support at 826.4 and below same could see a test of 823.7 level, And resistance is now likely to be seen at 831.4, a move above could see prices testing 833.7.

Trading Ideas:

Menthaoil trading range for the day is 823.7-833.7.

Menthaoil spot is at 947/-. Spot market is up by Rs.7/-.

Mentha oil traded higher as fresh buying support from pharmaceutical units due to tight stocks position.

Favorable crop conditions and expectations of higher output from the major producing belts capped the gains

Technically market is under short covering as market has witnessed drop in open interest by -0.58% to settled at 5791