Menthaoil settled up 2.97% at 717.5 on tight stocks position in the physical market. Further, pick-up in domestic and export demand too supported mentha oil prices uptrend. Demand is to pick up in the coming days that could support the prices which have fallen a lot over last few months. At Bareilly market arrivals were reported at 6 Drums(1-drum-180kg), down by 4 Drums(1-drum-180kg) as compared to previous day. At Barabanki market sources reported arrivals at 300 Drums(1-drum-180kg), steady as against previous day’s arrival. At Rampur market  arrivals were reported at 20 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. At Sambhal market sources reported arrivals at 40 Drums(1-drum=180kg), down by 10 Drums(1-drum=180kg) as compared to previous day. At Chandausi market total arrivals are at 15 Drums(1-drum-180kg), steady as against previous day’s arrival. 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. Technically market is under short covering as market has witnessed drop in open interest by -10.38% to settled at 7741 while prices up 20.7 rupee, now Menthaoil is getting support at 706.8 and below same could see a test of 696 level, And resistance is now likely to be seen at 723.7, a move above could see prices testing 729.8.

Trading Ideas:

Menthaoil trading range for the day is 696-729.8.

Menthaoil spot is at 792/-. Spot market is up by Rs.4/-.

Mentha oil ended with good gains on tight stocks position in the physical market.

Further, pick-up in domestic and export demand too supported mentha oil prices uptrend.

At Sambhal market sources reported arrivals at 40 Drums(1-drum=180kg), down by 10 Drums(1-drum=180kg) as compared to previous day.