Menthaoil settled down -0.92% at 796.3 driven by lack of demand from consuming industries in the spot market. Further, ample inventories following higher supplies from the major producing regions too influenced mentha oil prices.  Further, expectations of higher output from the major producing belts too adding pressure on mentha oil prices. In Rampur mandi total arrivals were at 70 Drums (1-drum=180kg), down by 10 Drums(1-drum=180kg) from previous day’s arrivals. In Bareilly total arrivals are at 25 Drums(1-drum-180kg), higher by 5 Drums(1-drum-180kg) as against previous day. In Barabanki arrivals were reported at 90 Drums(1-drum-180kg), steady as against previous day’s arrival. In Chandausi total arrivals were at 25 Drums(1-drum-180kg), down by 25 Drums(1-drum-180kg) from previous day’s arrivals. 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. Market sources suggested that the total production of mentha oil is estimated around 54-55 thousand tonnes in the current year against 45 thousand tonnes of the last year. Technically market is under fresh selling as market has witnessed gain in open interest by 3.75% to settled at 4179, now Menthaoil is getting support at 791.1 and below same could see a test of 784.1 level, And resistance is now likely to be seen at 806.4, a move above could see prices testing 814.7.

Trading Ideas:

Menthaoil trading range for the day is 783.5-814.1.

Menthaoil spot is at 860/-. Spot market is down by Rs.6/-.

Mentha oil ended with losses driven by lack of demand from consuming industries in the spot market.

Further, ample inventories following higher supplies from the major producing regions too influenced mentha oil prices.

In Barabanki arrivals were reported at 90 Drums(1-drum-180kg), steady as against previous day’s arrival.