Menthaoil settled up 3.99% at 701.70 in the line of expectation as rains continued in most of the regions across Uttar Pradesh impacting the arrival, also support seen as speculators created fresh positions due to pickup in demand from consuming industries in the spot market. Further, limited supplies following restricted arrivals from Chandausi in Uttar Pradesh too supported mentha oil prices uptrend. The Met Office has already confirmed the arrival of monsoon. It said more rains may occur in many parts of the state for the next few days. While prices will be capped on higher side as production this year expected higher at more than 60000 tonnes vs ~50000 tonnes last year as the area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year. Also 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. At Barabanki market, Mentha Oil finished at Rs. 740 per Kg, unchanged as compared to previous close. Total arrivals are at 200 Drums (1-drum-180kg), steady as against previous days arrival. Meanwhile Monsoon rainfall till now has been 63% less than average in central India and 47% less than normal in north-west India, according to the IMD. But the Indian weather office is not making any predictions regarding drought. “We give out weekly data regarding aridity conditions, and there are certain areas like Maharashtra, Karnataka, Gujarat and Madhya Pradesh which are facing extremely dry conditions that can be called as meteorological drought in terms of departure of rainfall,” said Pulak Guhathakurta, senior scientist at the hydromet division, IMD Pune. When the rainfall deficiency is more than 10% and when 20-40% of the country is under drought conditions, then the year is termed as an all-India drought year, according to IMD. Technically market is under short covering as market has witnessed drop in open interest by -12.46% to settled at 6522 while prices up 26.9 rupee, now Menthaoil is getting support at 684.7 and below same could see a test of 667.8 level, And resistance is now likely to be seen at 710.1, a move above could see prices testing 718.6.

Menthaoil trading range for the day is 667.7-718.5.

Menthaoil spot is at 775/-. Spot market is up by Rs. 22/-.

Menthaoil ganined as rains continued in most of the regions across Uttar Pradesh impacting the arrival

Prices will be capped on higher side as production this year expected higher at more than 60000 tonnes vs ~50000 tonnes last year

Total arrivals are at 200 Drums (1-drum-180kg), steady as against previous days arrival.

BUY MENTHA OIL JULY ABV 684.50 SL 676 TGT 689.50-696.50-704.50. MCX