Menthaoil settled up 0.56% at 833 on the back of strong demand in the spot markets amid hopes of export demand may pick up in the coming days. Further, tight stocks position in the physical market following restricted arrivals from producing region also supported the uptrend. As per market sources, the total stock position of around 33-34 thousand tonnes of mentha oil has been reported in the major mandies. This can easily meet the average annual domestic demand of 32-33 thousand tonnes. Market sources suggested that 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. Moreover, the total opening stocks of the current year were also estimated higher at 12 thousand tonnes against 8 thousand tonnes that were reported last year. 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 fresh buying as market has witnessed gain in open interest by 34.3% to settled at 4714 while prices up 4.6 rupee, now Menthaoil is getting support at 823 and below same could see a test of 813.1 level, And resistance is now likely to be seen at 839.4, a move above could see prices testing 845.9.

Trading Ideas:

Menthaoil trading range for the day is 813-845.8.

Menthaoil spot is at 928/-. Spot market is up by Rs. 4/-.

Mentha oil ended with gains on the back of strong demand in the spot markets amid hopes of export demand may pick up.

Tight stocks position in the physical market following restricted arrivals from producing region also supported the uptrend.

The total stock position of around 33-34 thousand tonnes of mentha oil has been reported in the major mandies