Menthaoil settled up 0.49% at 877.7 on the account of weak sowing progress in local mandies along with strong export demand in local mandies.  Reports of a fall in sowing in the growing state of UP are likely to support the market sentiments. With present rates being low, traders also foresee some improved demand in coming days with Elections getting over. In Sambhal total arrivals are at 50 Drums (1-drum=180kg), lower by 10 Drums (1-drum=180kg) as compared to previous day. In Barabanki total arrivals are at 80 Drums (1-drum-180kg), lower by 10 Drums (1-drum-180kg) as compared to previous day. 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 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 short covering as market has witnessed drop in open interest by -0.22% to settled at 3565, now Menthaoil is getting support at 869.4 and below same could see a test of 860.3 level, And resistance is now likely to be seen at 888.3, a move above could see prices testing 898.1.

Trading Ideas:

Menthaoil trading range for the day is 860-897.8.

Menthaoil spot is at 978/-. Spot market is down by Rs.14/-.

Mentha oil gained on the account of weak sowing progress in local mandies along with strong export demand in local mandies.

Reports of a fall in sowing in the growing state of UP are likely to support the market sentiments.

In Sambhal total arrivals are at 50 Drums lower by 10 Drums as compared to previous day.