Menthaoil settled down -3.85% at 674.8 triggered by higher arrivals from the major producing belts. Further, expectations of higher production due to favorable weather conditions during the sowing and growth stages also weighed on prices. Harvesting reports are reported to be proper from conducive weather in UP.

In Bareilly total arrivals are at 25 Drums(1-drum-180kg), lower by 5 Drums(1-drum-180kg) as compared to previous day. In Rampur estimated market supply was at 40 Drums(1-drum=180kg), up by 5 Drums(1-drum=180kg) as against previous day. In Sambhal total arrivals are at 200 Drums(1-drum=180kg), lower by 100 Drums(1-drum=180kg) as against previous day. In Chandausi sources reported arrivals at 10 Drums(1-drum-180kg), down by 10 Drums(1-drum-180kg) as against previous day. In Barabanki sources arrivals were reported at 200 Drums(1-drum-180kg), unchanged as compared to previous day's arrival. Prospects of rains in the coming days could however adversely affect the harvesting and provide some support.

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. Technically market is under long liquidation as market has witnessed drop in open interest by -4.59% to settled at 7450 while prices down -27 rupee, now Menthaoil is getting support at 664.2 and below same could see a test of 653.6 level, And resistance is now likely to be seen at 695, a move above could see prices testing 715.2.

Menthaoil trading range for the day is 653.6-715.2.

Menthaoil spot is at 742/-. Spot market is down by Rs. 28/-.

Mentha oil ended with losses triggered by higher arrivals from the major producing belts.

Expectations of higher production due to favorable weather conditions during the sowing and growth stages also weighed on prices.

In Rampur estimated market supply was at 40 Drums(1-drum=180kg), up by 5 Drums(1-drum=180kg) as against previous day.

SELL MENTHA OIL JULY @ 690 SL 710 TGT 676.50-660.MCX