Menthaoil settled down -0.91% at 775.1 weighed by favorable crop conditions and expectations of higher production from the major producing belts. Further, limited availability in the physical market following restricted arrivals from Chandausi in Uttar Pradesh limited the downside. With Gujarat extending ban on Gutka for 1 more year, this could have a negative impact on Mentha Oil demand. Higher production and high stock levels prevent markets from recovering a lot. Short term sentiments continued to remain volatile and any uptrend may be limited. However traders feel present rates are low and this could support the short term market sentiments with demand gradually rising Production this year expected higher at more than 60000 tonnes vs ~50000 tonnes last year. Latest reports from Spice Board indicate that for the period April-November last year, exports for Mint value-added products like Oil, Menthol and its crystals rose 129% in volumes at 15,850 and 62% in value at Rs 1975 Cr w. r. t. same period the previous year. Technically market is under long liquidation as market has witnessed drop in open interest by -1.72% to settled at 5376 while prices down -7.1 rupee, now Menthaoil is getting support at 771 and below same could see a test of 766.9 level, And resistance is now likely to be seen at 782.7, a move above could see prices testing 790.3.

Trading Ideas:

Menthaoil trading range for the day is 767.1-790.5.

Menthaoil spot is at 885/-. Spot market is down by Rs. 11/-

Menthaoil dropped weighed by favorable crop conditions and expectations of higher production from the major producing belts.

Further, limited availability in the physical market following restricted arrivals from Chandausi in Uttar Pradesh limited the downside.

Higher production and high stock levels prevent markets from recovering a lot.