Mentha oil on MCX settled down by -2.19% at 967.4 on fresh selling after the speculation that sowing activity had been inceresed in key production area. Mentha oil prices also dropped on account of muted demand from major consuming industries in the domestic spot market. Further, ample stocks position on higher supplies from major producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices. The weather looked good and everything seemed fine as of now as farmers are still under stress, as they have already suffered a lot because of demonetization. As cash is the primary mode of transaction in agriculture sector which contributes 15% to India’s total output. Earlier it was estimated that total area under Mentha planting will drop by 20% to 1.75 lakh ha for this season resulting into a proportionate fall in Mentha oil production this year. At Chandausi market total arrivals are at 20 Drums(1-drum-180kg), up by 15 Drums(1-drum-180kg) as compared to previous day. Mentha DMO is offered strong at Rs. 835 per Kg, higher by 1.21 per cent against previous trading day. Mentha Flakes at Chandausi market is quoted firm at Rs. 1175 per Kg, higher by 0.86 per cent as against previous day. At Barabanki market estimated market supply was at 60 Drums (1-drum-180kg), higher by 10 Drums (1-drum-180kg) from previous day’s. At Sambhal market arrivals were reported at 80 Drums(1-drum=180kg), up by 15 Drums (1-drum=180kg) from previous day’s arrivals. Mentha oil spot at Sambhal closed at 1119.20 per 1kg. Spot prices was down by Rs.-16.00/-.Technically now Menthaoil is getting support at 957.8 and below same could see a test of 948.3 level, And resistance is now likely to be seen at 983.4, a move above could see prices testing 999.5.

Trading Ideas:

# Menthaoil trading range for the day is 948.3-999.5.

# Mentha oil spot at Sambhal closed at 1119.20 per 1kg. Spot prices was down by Rs.-16.00/-.

# Mentha oil dropped on fresh selling after the speculation that sowing activity had been inceresed in key production area.

# Mentha oil prices also dropped on account of muted demand from major consuming industries in the domestic spot market.

# At Barabanki market estimated market supply was at 60 Drums (1-drum-180kg), higher by 10 Drums (1-drum-180kg) from previous day’s.