Mentha oil on MCX settled down by -0.73% at 882.1 on sluggish demand from consuming industries in the domestic and overseas markets. Further, ample stocks position on higher supplies from major producing belts of Chandausi in Uttar Pradesh, too added pressure on mentha oil prices. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Exports of mint products stood at 21,150 tonne in FY16 valued at RS. 2,577.59 crore against 25,750 tonne valued at RS. 2,689.25 crore in FY15. Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year. But, rainfalls later improved overall scenario that got worsened with scorching heat waves in May. Hence, overall mentha oil output for 2016-17 is now revised upwards at 32,000 tonnes. At Sambhal market , total arrivals are at 150 Drums(1-drum=180kg), steady as against previous day’s arrival. At Bareilly market, traders reported arrivals at 1 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At barabanki market arrivals were reported at 10 Drums(1-drum-180kg), higher by 4 Drums(1-drum-180kg) from previous trading day. At Rampur market arrivals were reported at 6 Drums (1-drum=180kg), steady as against previous day’s arrival. Mentha oil spot at Sambhal closed at 1017.20 per 1kg. Spot prices is down by Rs.-2.20/-.Technically market is under fresh selling as market has witnessed gain in open interest by 26.93% to settled at 4091 while prices down -6.5 rupee, now Menthaoil is getting support at 876.5 and below same could see a test of 870.8 level, And resistance is now likely to be seen at 890.5, a move above could see prices testing 898.8.

Trading Ideas:

Menthaoil trading range for the day is 870.8-898.8.

Mentha oil spot at Sambhal closed at 1017.20 per 1kg. Spot prices is down by Rs.-2.20/-.

Mentha oil dropped on sluggish demand from consuming industries in the domestic and overseas markets.

Further, ample stocks position on higher supplies from major producing belts of Chandausi in Uttar Pradesh, too added pressure.

India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year.