Menthaoil April contract dropped Rs 95.6 and settled at Rs 2351 on the back of sluggish offtake by traders and exporters at higher levels along with expectation of strong production in the current year. Traders mentioned that the total production of mentha oil in the current year is expected to rise by 20-25% to reach 36000-37000 tonnes due to possibility of strong sowing acreage as farmers have received steady return throughout the year. Moreover, sluggish demand by traders and exporters at higher levels also incited some selling in spot market. Expectations of higher sowing activities this year put pressure on the markets even as low stocks and lower arrivals were reported in the mandis. Rising export demand amidst lower stocks however are expected to support the prices in the medium term. The next crop is expected to arrive in June and till then arrivals are expected to remain weak in the mandis. The contract made intraday low of Rs 2349 a kg and high of Rs 2438 a kg with the volume of 4246 and total open interest for the same contact was at 4321. Now support for the menthol is seen at 2320.7 and below could see a test of 2290.3. Resistance is now likely to be seen at 2409.7, a move above could see prices testing 2468.3.
Mentha oil trading range for the day is 2290.3-2468.3.
Menthaoil spot is at 2370/-.Spot market is down by Rs. 100/-.
Mentha oil wilted on the back of sluggish offtake at higher levels along with expectation of strong production
Total production of mentha oil in the current year is expected to rise by 20-25% to reach 36000-37000 tonnes
The total arrivals stood steady at 150-180 drums.