Menthaoil settled up 0.11% at 846.6 on pick-up in demand from consuming industries in the spot markets amid lower arrivals from the major producing regions. However, higher production prospects and reports of better sowing due to favorable crop conditions capped the gains in mentha oil prices.

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 fresh buying as market has witnessed gain in open interest by 0.37% to settled at 6186 while prices up 0.9 rupee, now Menthaoil is getting support at 841.6 and below same could see a test of 836.6 level, And resistance is now likely to be seen at 853.7, a move above could see prices testing 860.8.

Trading Ideas:

Menthaoil trading range for the day is 836.6-860.8.

Menthaoil spot is at 945/-. Spot market remains unchanged.

Mentha oil moved higher on pick-up in demand from consuming industries in the spot markets amid lower arrivals.

However, higher production prospects and reports of better sowing due to favorable crop conditions capped the gains.

Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand