Menthaoil settled down -2.72% at 783.2 on expectations of higher arrivals from the major producing belts due to favorable weather conditions. Further, expectations of higher output from the major producing belts too adding pressure on mentha oil prices. However, increase in domestic as well as export demand capped some losses in mentha oil prices to some extent. In Rampur total arrivals were at 60 Drums(1-drum=180kg), down by 10 Drums(1-drum=180kg) as against previous day. In Barabanki estimated market supply was at 90 Drums(1-drum-180kg), unchanged as compared to previous days arrivals. In Bareilly sources reported arrivals at 15 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) as against previous day. In Sambhal estimated market supply was at 90 Drums(1-drum=180kg), higher by 10 Drums(1-drum=180kg) as against previous day. In Chandausi sources reported arrivals at 25 Drums(1-drum-180kg), lower by 25 Drums(1-drum-180kg) from previous trading day. 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. As per market sources, most of the cultivators and traders have reported strong liquidation in the major mandies to meet their cash requirement during the festivals season. Technically market is under fresh selling as market has witnessed gain in open interest by 1.77% to settled at 4143 while prices down -21.9 rupee, now Menthaoil is getting support at 773.5 and below same could see a test of 763.8 level, And resistance is now likely to be seen at 800.4, a move above could see prices testing 817.6.

Trading Ideas:

Menthaoil trading range for the day is 763.8-817.6.

Menthaoil spot is at 811/-. Spot market is down by Rs.54/-.

Mentha oil ended with losses on expectations of higher arrivals from the major producing belts due to favorable weather conditions.

Further, expectations of higher output from the major producing belts too adding pressure on mentha oil prices.

However, increase in domestic as well as export demand capped some losses in mentha oil prices to some extent.