Menthaoil yesterday settled up 0.34% at 855 on the back of strong demand in the spot markets amid hopes of export demand may pick up in the coming days. Tight supplies in the physical market following less arrivals from Chandausi in Uttar Pradesh limited the downside. Besides the new arrivals, strong production estimates will instigate further stockiest selling in local mandies. As per latest data the total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year, up almost 10-12% from the last year. This is mainly due to the better price realization and favourable crop conditions. The total opening stocks of Mentha oil are estimated at 13000-15000 tonnes for the current year. This may encourage stockiest liquidation at high levels. Moreover, the total opening stocks of Mentha oil are estimated at 13000-15000 tonnes for the current year. This may encourage stockiest liquidation at high levels. Mentha oil production this year expected higher at more than 60000 tons against 50000 tons last year. Higher production estimates are also putting further pressure on the commodity movement. The area under mentha crop is expected to be higher at 2.10 lakh ha against last year's 1.75 lakh ha. Technically market is under short covering as market has witnessed drop in open interest by -3.83% to settled at 3594 while prices up 2.9 rupee, now Menthaoil is getting support at 842.3 and below same could see a test of 829.7 level, And resistance is now likely to be seen at 867.3, a move above could see prices testing 879.7.

Trading Ideas:

Menthaoil trading range for the day is 828.8-878.8.

Menthaoil spot is at 960/-. Spot market is up by Rs. 3/-.

Menthaoil gained on the back of strong demand in the spot markets amid hopes of export demand may pick up in the coming days.

Tight supplies in the physical market following less arrivals from Chandausi in Uttar Pradesh limited the downside.

As per latest data the total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year