Mentha oil on MCX settled down by -1.04% at 912.1 on profit booking after prices gained in last couple of sessions after fire engulfs German factory of world’s largest chemicals producer BASF. The cause of the fire was not immediately clear. BASF, which employs more than 122,000 workers all around the globe, said it has informed local authorities about the incident. 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. The Spices Board said that the bulk of the exports is in the form of crystallised menthol. 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 Barabanki market, total arrivals are at 350 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Sambhal market, estimated market supply was at 125 Drums(1-drum=180kg), steady as against previous day’s arrival. At Rampur market, sources reported arrivals at 5 Drums(1- drum=180kg), down by 1 Drums(1- drum=180kg) as compared to previous day. Mentha oil spot at Sambhal closed at 1047.60 per 1kg. Spot prices is down by Rs.-9.20/-.Technically now Menthaoil is getting support at 904.3 and below same could see a test of 896.4 level, And resistance is now likely to be seen at 924, a move above could see prices testing 935.8.

Trading Ideas:

Menthaoil trading range for the day is 896.4-935.8.

Mentha oil spot at Sambhal closed at 1047.60 per 1kg. Spot prices is down by Rs.-9.20/-.

Mentha oil prices ended with losses on profit booking after prices gained in last couple of sessions.

China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports.

Hence, overall mentha oil output for 2016-17 is now revised upwards at 32,000 tonnes.