Menthaoil settled up 0.75% at 919.4 as demand from Pharma industries was noted and is expected to pick up again at the lower levels. Traders stated that steady demand was mainly seen in the wake of anticipation of poor sowing acreage in the next season as a weak price trend in the current year will divert the farmer's interest towards other crops. Moreover, weak prices of mentha oil also instigated the fresh buying of long term investors at current levels. Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries. The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year. India's production of mentha oil may touch 60000 tons this year. Area under crop may touch 2.10 lakh ha vs 1.75 lakh ha last year. 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. The total opening stocks of Mentha oil are estimated at 13000-15000 tonnes for the current year. Technically market is under short covering as market has witnessed drop in open interest by -0.48% to settled at 5226 while prices up 6.8 rupee, now Menthaoil is getting support at 911 and below same could see a test of 902.5 level, And resistance is now likely to be seen at 926, a move above could see prices testing 932.5.

Trading Ideas:

Menthaoil trading range for the day is 306.5-306.5.

Menthaoil spot is at 1012/-. Spot market is down by Rs. 13/-.

Mentha oil ended with gains as demand from Pharma industries was noted and is expected to pick up again at the lower levels.

Demand from Pharma industries was noted and is expected to pick up again at the lower levels.

The total opening stocks of Mentha oil are estimated at 13000-15000 tonnes for the current year.