Menthaoil settled up 1% at 834.2 supported by improving demand from pharma industries against restricted arrivals from the major producing belts. Further, tight stocks position in the physical market too supported the commodity, though favorable crop conditions and expectations of higher production from the major producing belts capped the gains in mentha oil prices to some extent. 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 mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. The prices will also be pressurized by waning offtake by natural mentha oil exporters. The sources suggested that steady supplies of synthetic mentha oil have reduced the demand of natural mentha oil in local mandies. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 1.97% to settled at 5268 while prices up 8.3 rupee, now Menthaoil is getting support at 828.4 and below same could see a test of 822.5 level, And resistance is now likely to be seen at 838.8, a move above could see prices testing 843.3.

Trading Ideas:

Menthaoil trading range for the day is 822.1-842.9.

Menthaoil spot is at 940/-. Spot market is up by Rs.5/-.

Mentha oil traded higher supported by improving demand from pharma industries against restricted arrivals.

Though favorable crop conditions and expectations of higher production from the major producing belts capped the gains.

Technically market is under fresh buying as market has witnessed gain in open interest by 1.97% to settled at 5268