Menthaoil settled down -2.21% at 771.5 as favorable crop conditions and expectations of higher production from the major producing belts weighed on 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 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 sources suggested that steady supplies of synthetic mentha oil have reduced the demand of natural mentha oil in local mandies. As per market sources, most of the cultivators and traders have reported strong liquidation in the major mandies to meet their cash requirement during the festivals season. The total stock position of mentha oil is currently reported at around 45-50 thousand tonnes against the average annual domestic demand of 32-33 thousand tonnes. Technically market is under fresh selling as market has witnessed gain in open interest by 2.98% to settled at 5279 while prices down -17.4 rupee, now Menthaoil is getting support at 763.6 and below same could see a test of 755.7 level, And resistance is now likely to be seen at 786.9, a move above could see prices testing 802.3.

Trading Ideas:

Menthaoil trading range for the day is 756.3-802.9.

Menthaoil spot is at 880/-. Spot market is down by Rs. 12/-

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

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

Sources mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes.