Menthaoil settled down -0.37% at 824 on the back of steady carryover stocks in local mandies along with waning export demand of mentha oil. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. Traders estimated that the current year mentha oil production will be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. The prices were also pressurized by waning offtake by natural mentha oil exporters. The sources suggested that steady supplies of synthetic mentha oil have reduced the demand of natural mentha oil in local mandies. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -0.38% to settled at 6225 while prices down -3.1 rupee, now Menthaoil is getting support at 819.8 and below same could see a test of 815.5 level, And resistance is now likely to be seen at 829.9, a move above could see prices testing 835.7.

Trading Ideas:

Menthaoil trading range for the day is 815.5-835.7.

Menthaoil spot is at 934/-. Spot market is down by Rs. 1/-.

Mentha oil ended with losses on the back of steady carryover stocks in local mandies along with waning export demand.

Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states

India's production of mentha oil may touch 60000 tons this year.