Mentha Oil settled flat as prices seen supported at lower levels driven by strong demand from consuming industries in spot markets. Further, limited availability in the physical market following lower arrivals from Chandausi in Uttar Pradesh too supported the commodity uptrend, though favorable crop conditions, expectations of higher production from the major producing belts, capped the gains to some extent. The mint basket with products such as mint oils, menthol and menthol crystals rule the roost with an export of 15,850 MT which earned a sum of Rs.1975.17 crore. It showed an increase of 129 percent in volume and 62 percent in value when compared to the export of 6,916 MT during the same period in the previous year, which fetched Rs.1,222.99 crores. 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. Traders 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 sources suggested that steady supplies of synthetic mentha oil have reduced the demand of natural mentha oil in local mandies. Technically market is under long liquidation as market has witnessed drop in open interest by -1.84% to settled at 5182 while prices remain unchange0 rupee, now Menthaoil is getting support at 767.8 and below same could see a test of 762.4 level, And resistance is now likely to be seen at 778.3, a move above could see prices testing 783.4.

Trading Ideas:

Menthaoil trading range for the day is 762.7-783.7.

Menthaoil spot is at 882/-. Spot market is up by Rs.2/-

Mentha oil settled flat as prices seen supported at lower levels driven by strong demand from consuming industries in spot markets

Further, limited availability in the physical market following lower arrivals from Chandausi in Uttar Pradesh too supported

The mint basket with products such as mint oils, menthol and menthol crystals rule the roost with an export of 15,850 MT.