Menthaoil settled down -0.82% at 710.6 amid sluggish demand from consuming industries in the spot market. Further, ample inventories in the physical market due to increased arrivals from the major producing belts too added pressure. In Rampur estimated market supply was at 40 Drums(1-drum=180kg), higher by 5 Drums(1-drum=180kg) as against previous day. In Bareilly sources reported arrivals at 20 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) from previous trading day. In Barabanki sources reported arrivals at 250 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. In Sambhal sources reported arrivals at 70 Drums(1-drum=180kg), down by 30 Drums(1-drum=180kg) from previous day’s arrivals. In Chandausi arrivals were reported at 35 Drums(1-drum-180kg), lower by 15 Drums(1-drum-180kg) as compared to previous day. As per the market sources, the total sowing acreage of mentha oil is expected to decline by 20-25% in the current year. Sources added that the total production of mentha oil in the current year is likely to be around 35-36 thousand tonnes against the previous year of 50 thousand tonnes. The prices will also be well supported by strong export demand in local mandies. Traders mentioned that the total exports of mentha oil for the full year April 1, 2013 to March 31,2014 are likely to surpass the previous record of 20,500 tonne , ie. reported in 2008. Technically market is under long liquidation as market has witnessed drop in open interest by -1.58% to settled at 6184, now Menthaoil is getting support at 706.2 and below same could see a test of 699.8 level, And resistance is now likely to be seen at 721.4, a move above could see prices testing 730.2.

Trading Ideas:

Menthaoil trading range for the day is 699.1-729.5.

Menthaoil spot is at 796/-. Spot market is down by Rs.5/-.

Menthaoil settled down amid sluggish demand from consuming industries in the spot market.

Further, ample inventories in the physical market due to increased arrivals from the major producing belts too added pressure.

In Rampur estimated market supply was at 40 Drums(1-drum=180kg), higher by 5 Drums(1-drum=180kg) as against previous day.