Menthaoil settled up 3.15% at 733 tracking a firm trend at spot market on strong demand from consuming industries. Further, tight supplies from Chandausi in Uttar Pradesh too supported mentha oil prices uptrend. In Rampur estimated market supply was at 30 Drums(1-drum=180kg), lower by 10 Drums(1-drum=180kg) as against previous day. In Bareilly estimated market supply was at 25 Drums(1-drum-180kg), up by 5 Drums(1-drum-180kg) from previous trading day. In Barabanki arrivals were reported at 250 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival.

In Sambhal total arrivals are at 100 Drums(1-drum=180kg), up by 30 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.

Sources 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. 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. Technically market is under short covering as market has witnessed drop in open interest by -4.08% to settled at 5932 while prices up 22.40 rupee, now Menthaoil is getting support at 712.9 and below same could see a test of 693.4 level, And resistance is now likely to be seen at 743.2, a move above could see prices testing 754.

Trading Ideas:

Menthaoil trading range for the day is 693.6-754.2.

Menthaoil spot is at 828/-. Spot market is up by Rs. 32/-.

Mentha oil prices ended with gains tracking a firm trend at spot market on strong demand from consuming industries.

Further, tight supplies from Chandausi in Uttar Pradesh too supported mentha oil prices uptrend.

In Rampur estimated market supply was at 30 Drums(1-drum=180kg), lower by 10 Drums(1-drum=180kg) as against previous day.