Mentha oil on MCX settled down by -0.1% at 911.2 amid lackluster demand in the domestic spot market. However, insufficient stocks position on restricted supplies from major producing belts of Chandausi in Uttar Pradesh restricted some losses. Fire and smoke have engulfed the premises belonging to German company BASF, the world’s largest chemicals manufacturer, in the town of Lampertheim, local media report. 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. 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. At Sambhal market, total arrivals are at 125 Drums(1-drum=180kg), steady as against previous day’s arrival. At Barabanki market, estimated market supply was at 350 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Rampur market, estimated market supply was at 6 Drums(1-drum=180kg), up by 1 Drums(1- drum=180kg) as against previous day. Mentha oil spot at Sambhal closed at 1044.10 per 1kg. Spot prices is down by Rs.-3.50/-.Technically now Menthaoil is getting support at 907.1 and below same could see a test of 903.1 level, And resistance is now likely to be seen at 915.3, a move above could see prices testing 919.5.

Trading Ideas:

Menthaoil trading range for the day is 903.1-919.5.

Mentha oil spot at Sambhal closed at 1044.10 per 1kg. Spot prices is down by Rs.-3.50/-.

Mentha oil on prices ended with losses amid lackluster demand in the domestic spot market.

However, insufficient stocks position on restricted supplies from major producing belts of Chandausi in Uttar Pradesh restricted some losses.

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