Mentha oil on MCX settled up by 2.41% at 1043.7 on the back of rising demand from consuming industries at the spot market. Further, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also added support to mentha oil prices uptrend. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper, versus 23000 of total exports last year. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks, thus whenever requirement arises, industry people will be purchasing from the farmers. This will be another bullish price driver. Indian markets had reported higher sowing for current year. Traders had estimated earlier that the total production in the range of 35000-37000 tons for this year, and currently it appears that the average estimate might be reduced to 30000 tons due to lower plantings on falling prices in the last two years. At Sambhal market total arrivals are at 70 Drums(1- drum=180kg), higher by 10 Drums(1-drum=180kg) as against previous day. At Rampur market arrivals were reported at 4 Drums(1-drum=180kg), lower by 1 Drums(1-drum=180kg) from previous day’s arrivals. At Barabanki market sources reported arrivals at 100 Drums(1-drum-180kg), steady as against previous day’s arrival. Mentha oil spot at Sambhal closed at 1148.50 per 1kg. Spot prices was up by Rs. 2.60/-.Technically now Menthaoil is getting support at 1027 and below same could see a test of 1010.3 level, And resistance is now likely to be seen at 1054.7, a move above could see prices testing 1065.7.

Trading Ideas:

# Menthaoil trading range for the day is 1010.3-1065.7.

# Mentha oil spot at Sambhal closed at 1148.50 per 1kg. Spot prices was up by Rs. 2.60/-.

# Mentha oil settled flat despite of rising demand from consuming industries at the spot market.

# Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year.

# At Sambhal market total arrivals are at 70 Drums(1-drum=180kg), higher by 10 Drums(1-drum=180kg) as against previous day.