Menthaoil settled down -3.71% at 708.3 triggered by subdued demand from consuming industries in the spot market against higher supplies from the major producing regions. The commodity prices weakened further on the expectations of higher production due to favorable weather conditions during the sowing and growth stages and also due to increase in acreage. In Rampur total arrivals are at 20 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. In Bareilly arrivals were reported at 25 Drums(1-drum-180kg), higher by 10 Drums(1-drum-180kg) from previous day’s arrivals.

In Sambhal estimated market supply was at 80 Drums(1-drum=180kg), steady as against previous day’s arrival. In Barabanki arrivals were reported at 300 Drums(1-drum-180kg), up by 50 Drums(1-drum-180kg) as against previous day. In Chandausi arrivals were reported at 50 Drums(1-drum-180kg), up by 45 Drums(1-drum-180kg) as against previous day.

With arrivals too slowing down, traders are not ruling out more recovery for this commodity in the coming days. Any rains in growing areas in UP could perk up prices even further. As per the market sources, the total sowing acreage of mentha oil is expected to decline by 20-25% in the current year. 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 fresh selling as market has witnessed gain in open interest by 0.65% to settled at 5855, now Menthaoil is getting support at 696.1 and below same could see a test of 686.1 level, And resistance is now likely to be seen at 726.2, a move above could see prices testing 746.3.

Trading Ideas:

Menthaoil trading range for the day is 686.8-747.

Menthaoil spot is at 790/-. Spot market is down by Rs. 31/-.

Mentha oil prices dropped triggered by subdued demand in the spot market against higher supplies.

The prices weakened further on the expectations of higher production due to favorable weather conditions during the sowing and growth stages.

In Bareilly arrivals were reported at 25 Drums(1-drum-180kg), higher by 10 Drums(1-drum-180kg) from previous day’s arrivals.