Mentha oil on MCX settled up by 0.53% at 983.5 on some buying after prices remained under pressure amid of reports that carryover stocks are huge against the current consumption level, while the stocks is also been sufficient. Short term outlook remain weak as first of all prices are trading below 1000 level mark while the huge carryover stock of mentha oil and also prices trading with weakness leading to a glut with synthetic mint oil garnering larger share of the market. Sentimental weakness will continious for mentha demand as the key consumption sector (Tobacco procusts)is witnesing slow down in demand. Prices had been under pressure since March after Yogi Adityanath, the Chief Minister of Uttar Pradesh, has banned paan chewing and gutka or tobacco in all government offices in the state. Later, a statement said that paan and tobacco products will also be banned in schools, colleges and hospitals. WHO’s tobacco control treaty, which came into effect in 2005, has achieved a 2.5 per cent reduction in global smoking rate, according to a study. Now on domestic side traders had estimated earlier 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. Trade sources estimate that total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season resulting into a proportionate fall in Mentha oil production this year. Mentha oil spot at Sambhal closed at 1120.30 per 1kg. Spot prices was down by Rs.-1.40/-.Technically now Menthaoil is getting support at 976.9 and below same could see a test of 970.4 level, And resistance is now likely to be seen at 987.9, a move above could see prices testing 992.4.

Trading Ideas:

# Menthaoil trading range for the day is 970.4-992.4.

# Mentha oil spot at Sambhal closed at 1120.30 per 1kg. Spot prices was down by Rs.-1.40/-.

# Mentha oil gained recovering on some buying after prices remained under pressure amid of reports that carryover stocks are huge

# Sentimental weakness will continious for mentha demand as the key consumption sector (Tobacco products) is witnesing slow down in demand.

# Now on domestic side traders had estimated earlier total production in the range of 35000-37000 tons for this year.