Mentha Oil ended with small gains on firm demand from consuming industries along with tight supplies in the physical market. However, favorable crop conditions and expectations of higher output from the major producing belts capped the gains in mentha oil prices to some extent. Estimated market supply was at 90 Drums (1-drum-180kg), unchanged as compared to previous day’s arrival. 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 -5.16% to settled at 5492 while prices up 0.3 rupee, now Menthaoil is getting support at 827 and below same could see a test of 824.6 level, And resistance is now likely to be seen at 832.9, a move above could see prices testing 836.4.

Trading Ideas:

Menthaoil trading range for the day is 824.6-836.4.

Menthaoil spot is at 941/-. Spot market is down by Rs.6/-.

Mentha oil ended with small gains on firm demand from consuming industries along with tight supplies in the physical market.

However, favorable crop conditions and expectations of higher output from the major producing belts capped the gains

India's production of mentha oil may touch 60000 tons this year.