Menthaoil settled down -0.31% at 715.4 on profit booking after the recent gains and sluggish demand in spot markets following higher supplies from the major producing regions. The commodity prices weakened further on the expectations of higher output from the major producing belts. Some demand had been noted at these lower levels but higher stocks in mandis have been limited the uptrend for the counter.

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. In Rampur arrivals were reported at 25 Drums(1-drum=180kg), up by 5 Drums(1-drum=180kg) as compared to previous day.

In Chandausi estimated market supply was at 5 Drums(1-drum-180kg), lower by 15 Drums(1-drum-180kg) from previous trading day. In Bareilly estimated market supply was at 25 Drums(1-drum-180kg), up by 5 Drums(1-drum-180kg) from previous day’s arrivals. In Barabanki total arrivals are at 300 Drums(1-drum-180kg), steady as against previous day’s arrival. Technically market is under long liquidation as market has witnessed drop in open interest by -3.56% to settled at
4905 while prices down -2.2 rupee, now Menthaoil is getting support at 698.5 and below same could see a test of 682.8 level, And resistance is now likely to be seen at 730.7, a move above could see prices testing 747.2.

Trading Ideas:

Menthaoil trading range for the day is 683.2-747.6.

Menthaoil spot is at 792/-. Spot market remains unchanged.

Mentha oil dropped on profit booking after the recent gains and sluggish demand in spot markets following higher supplies from the major producing regions

The commodity prices weakened further on the expectations of higher output from the major producing belts.

In Rampur arrivals were reported at 25 Drums(1-drum=180kg), up by 5 Drums(1-drum=180kg) as compared to previous day.