Menthaoil settled up 1.08% at 802 on pickup in demand from the pharmaceutical industries against lower arrivals from the major producing regions, though favorable crop conditions, expectations of higher production from the major producing belts and waning offtake by the natural mentha oil exporters, capped the gains in mentha oil prices to some extent. 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 mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. The prices will also be 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. 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. Technically market is under short covering as market has witnessed drop in open interest by -5.29% to settled at 5314 while prices up 8.6 rupee, now Menthaoil is getting support at 794.8 and below same could see a test of 787.6 level, And resistance is now likely to be seen at
806.6, a move above could see prices testing 811.2.

Trading Ideas:

Menthaoil trading range for the day is 787.5-811.1.

Menthaoil spot is at 920/-. Spot market is up by Rs. 6/-

Mentha oil ended with gains on pickup in demand from the pharmaceutical industries against lower arrivals from the major producing regions

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

The prices will also be pressurized by waning offtake by natural mentha oil exporters.