Menthaoil settled down -0.6% at 835.1 on late profit booking after prices gained earlier due to tight stocks position in the physical market and improved overseas demand. Good demand from consuming industries against lower arrivals from the major producing belts too supported mentha oil prices. However, comfortable carryover stocks, favorable crop conditions and expectations of higher production from major producing belts capped the gains in mentha oil prices. However, favorable crop conditions and higher production prospects capped the gains in mentha oil prices. 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. Sources estimated that the current year mentha oil production will be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. 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 -2.37% to settled at 5837 while prices down -5 rupee, now Menthaoil is getting support at 831.5 and below same could see a test of 827.8 level, And resistance is now likely to be seen at 840.9, a move above could see prices testing 846.6.

Trading Ideas:

Menthaoil trading range for the day is 827.7-846.5.

Menthaoil spot is at 943/-. Spot market is down by Rs. 4/-.

Menthaoil dropped on late profit booking after prices gained earlier due to tight stocks position in the physical market

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

Technically market is under long liquidation as market has witnessed drop in open interest by -2.37% to settled at 5837