Menthaoil yesterday settled down -1.04% at 883 tracing the lackluster demand of the commodity in the spot markets. The trading sentiment weakened further due to higher production prospects, high stock levels and reports of better sowing. The commodity has been witnessing decline for last couple of days as the strength in rupee was keeping the export demand lower. Traders feel rates have risen a lot over last few days on the back of improved demand and expected some more corrections before initiating fresh demand in the markets. Demand from Pharma industries was noted and is expected to pick up again at the lower levels. 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. 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. For the medium term, high stock levels would mean subdued price. technically market is under long liquidation as market has witnessed drop in open interest by -0.61% to settled at 5180 while prices down -9.3 rupee, now Menthaoil is getting support at 872 and below same could see a test of 861.1 level, And resistance is now likely to be seen at 894.3, a move above could see prices testing 905.7.

Trading Ideas:

Menthaoil trading range for the day is 860.4-905.

Menthaoil spot is at 985/-. Spot market is down by Rs. 5/-.

Mentha oil edged lower tracing the lackluster demand of the commodity in the spot markets.

Sentiment weakened further due to higher production prospects, high stock levels and reports of better sowing.

Technically market is under long liquidation as market has witnessed drop in open interest by -0.61% to settled at 5180