Menthaoil settled down -1.59% at 782.2 due to ample stock positions in the physical markets, favorable crop conditions and expectations of higher production from the major producing belts. However, pickup in demand from the pharmaceutical industries capped losses 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 fresh selling as market has witnessed gain in open interest by 0.96% to settled at 5470 while prices down -12.6 rupee, now Menthaoil is getting support at 777.7 and below same could see a test of 773.3 level, And resistance is now likely to be seen at 789.3, a move above could see prices testing
796.5.

Trading Ideas:

Menthaoil trading range for the day is 773.3-796.5.

Menthaoil spot is at 896/-. Spot market is down by Rs. 17/-

Mentha oil edged lower due to favorable crop conditions and expectations of higher production

However, pickup in demand from the pharmaceutical industries capped losses in mentha oil prices to some extent.

The total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states.