Menthaoil yesterday traded with the negative node and settled -0.24% down at 1432 as traders waited for dips before initiating fresh demand in the mandis. Rates bounced back by day end as demand from Corporates rose in the mandis amidst moderate arrivals. High stock levels had ensured a fall in rates for the commodity over last few days. According to the sources, the total area under mentha crop cultivation is expected to remain 20% higher at 2.10 lakh hectares this year against last year's 1.75 lakh ha. Also, mentha oil output is estimated to be at around 65,000 tons this year, when compared to 53,000 tons in the last year. Sowing for mentha crop is expected to be completed by the end of February. Recent ban on gutka has directly caused to fall market demand for mentha oil. Total production of mentha oil stood around 45,000 tons and it is likely that carry forward stock may be around 3,000 tons. Today we have seen fall in march contract Spread between menthol oil FEB & MAR contracts yesterday ended at -146.00 that is clearly indicating that the pressure in furture month will be seen ahead of arrivals. In yesterday's trading session menthol oil has touched the low of 1417.5 after opening at 1431.7, and finally settled at 1432. For today's session market is looking to take support at 1419, a break below could see a test of 1406 and where as resistance is now likely to be seen at 1443.5, a move above could see prices testing 1455.

Trading Ideas:

Mentha oil trading range for the day is 1406-1455.

Menthaoil spot is at 1450/- Spot market is down by Rs. 10/-.

Menthaoil down as traders waited for dips before initiating fresh demand in the mandis.

Spread between menthol oil FEB & MAR ended at -146.00 that is clearly indicating that the pressure in furture month.

Rates bounced back by day end as demand from Corporates rose in the mandis amidst moderate arrivals.