Menthaoil yesterday settled up 1.46% at 894 owing to the rising demand in the physical market. Fresh positions that were created by speculators on pick-up in spot demand amid restricted arrivals from Chandausi in Uttar Pradesh, mainly pushed up the prices. Most of the traders and end users have engaged into fresh buying in local mandies from the last one week in anticipation of strong demand in domestic and international market at 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. Technically market is under short covering as market has witnessed drop in open interest by -3.65% to settled at 4991 while prices up 12.9 rupee, now Menthaoil is getting support at 880.4 and below same could see a test of 866.9 level, And resistance is now likely to be seen at 902.6, a move above could see prices testing 911.3.

Trading Ideas:

Menthaoil trading range for the day is 867.2-911.6.

Menthaoil spot is at 988/-. Spot market is up by Rs. 3/-.

Menthaoil ended with gains owing to the rising demand in the physical market.

Most of the traders and end users have engaged into fresh buying in local mandies from the last one week in anticipation of strong demand

The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year.