Menthaoil settled up 1.52% at 787.60 as support seen from the short covering and low level buying as 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. Now Menthaoil is getting support at 776.7 and below same could see a test of 765.9 level, And resistance is now likely to be seen at 794.6, a move above could see prices testing 801.7.

Trading Ideas:

Menthaoil trading range for the day is 766.4-802.2.

Menthaoil spot is at 892/-. Spot market is up by Rs. 7/-

Menthaoil ended with gains driven by pick-up in demand from consuming industries in spot markets.

Expectations of higher production from the major producing belts limited the upside

The sources suggested that steady supplies of synthetic mentha oil have reduced the demand of natural mentha oil in local mandies.