Menthaoil settled up 0.21% at 823.6 supported by strong demand from consuming industries. The sentiments may remain under pressure due to higher production prospects and reports of better sowing. The total production of mentha oil is estimated around 54-55 thousand tonnes in the current year against 45 thousand tonnes of the last year. This is mainly due to the better price realization and favourable crop conditions. 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. The market picture for mentha oil looks weak as higher output and high stock levels put a stop on the markets from recovering in a big way. 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. Moreover, the total opening stocks of Mentha oil are estimated at 13000-15000 tonnes for the current year. Production this year expected higher at more than 60,000 tons against 50,000 tons last year. Technically market is under short covering as market has witnessed drop in open interest by -10.43% to settled at 4645 while prices up 1.7 rupee, now Menthaoil is getting support at 816.5 and below same could see a test of 809.3 level, And resistance is now likely to be seen at 828.9, a move above could see prices testing 834.1.

Trading Ideas:

Menthaoil trading range for the day is 809.3-834.1.

Menthaoil spot is at 938/-. Spot market is up by Rs. 2/-.

Mentha oil ended with gains supported by strong demand from consuming industries.

The sentiments may remain under pressure due to higher production prospects and reports of better sowing.

Technically market is under short covering as market has witnessed drop in open interest by -10.43% to settle at 4645.