Menthaoil yesterday settled down -2.6% at 821 as lack of strong demand kept pressure on the market sentiments. Weak demand prevented any strong upside movement. Sources waited for some more dips before initiating fresh demand. Besides the new arrivals, the strong production estimates might also encourage some stockiest selling from higher levels. As per latest data, the total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year, up almost 10-12% from the last year. This is mainly due to the better price realization and favourable crop conditions. Moreover, the total opening stocks of Mentha oil are estimated at 13000-15000 tonnes for the current year. This may encourage stockiest liquidation at high levels. As per the market data, the fresh arrivals of around 950-1000 drums of new mentha oil is coming in the major mandies of Chandausi with the price range of Rs 950-990 per kg. Production this year expected higher at more than 60,000 tons against 50,000 tons last year. Higher stock levels could pressurize prices in medium term. The total area under mentha crop is expected to increase this year as the commodity prices witnessed firm trend in the last year due to good demand from pharmaceutical industry. Technically market is under long liquidation as market has witnessed drop in open interest by -0.71% to settled at 5034 while prices down -21.9 rupee, now Menthaoil is getting support at 813.5 and below same could see a test of 806.1 level, And resistance is now likely to be seen at 831.2, a move above could see prices testing 841.5.

Trading Ideas:

Menthaoil trading range for the day is 806-841.4.

Menthaoil spot is at 904/-. Spot market is down by Rs. 8/-.

Menthaoil yesterday settled down as lack of strong demand kept pressure on the market sentiments.

Besides the new arrivals, the strong production estimates might also encourage some stockiest selling from higher levels.

Technically market is under long liquidation as market has witnessed drop in open interest by -0.71% to settled at 5034