Menthaoil settled up 0.23% at 835.5 driven by pick-up in spot demand from consuming industries. Further, bargain buying at lower levels on the account of weak sowing progress in local mandies along with strong export demand too supported mentha oil prices. Reports of lower crop sowing had been there. But low demand and high stocks limited the uptrend. As per the market sources, the total sowing acreage of mentha oil is expected to decline by 20-25% in the current year on the account of delayed harvesting mustard and wheat crop in major areas of Uttar Pradesh and Punjab coupled with poor realization rate from mentha oil. Sources added that the total production of mentha oil in the current year is likely to be around 35-36 thousand tonnes against the previous year of 50 thousand tonnes. The prices were also supported by strong export demand in local mandies. Sources mentioned that the total exports of mentha oil for the full year April 1, 2013 to March 31,2014 are likely to surpass the previous record of 20,500 tonne , ie. reported in 2008. Sources are expecting that the total exports is likely to reach in the range of 21000 to 21500 tonnes as most of exporters are showing strong buying participation at current levels with the anticipation of limited supplies in next marketing season. Technically market is under fresh buying as market has witnessed gain in open interest by 0.46% to settled at 3715 while prices up 3.4 rupee, now Menthaoil is getting support at 832.3 and below same could see a test of 827.6 level, And resistance is now likely to be seen at 840.6, a move above could see prices testing 844.2.

Trading Ideas:

Menthaoil trading range for the day is 827.1-843.7.

Menthaoil spot is at 948/-. Spot market is up by Rs.6/-.

Mentha oil ended with gains driven by pick-up in spot demand from consuming industries.

Bargain buying at lower levels on the account of weak sowing progress in local mandies along with strong export demand too supported.

The total exports is likely to reach in the range of 21000 to 21500 tonnes as most of exporters are showing strong buying participation