Mentha Oil settled down by -1.74% at 892.5 due to demand concerns from consuming industries in the spot market. Besides, ample stocks in the physical markets following increased arrivals from Chandausi in Uttar Pradesh too weighed on mentha oil prices. At Barabanki market estimated market supply was at 300 Drums(1-drum-180kg), higher by 260 Drums(1-drum-180kg) from previous day’s arrivals. At Rampur market arrivals were reported at 5 Drums(1-drum=180kg), higher by 1 Drums(1-drum=180kg) as against previous day. At Bareilly market estimated market supply was at 1 Drums(1-drum-180kg), lower by 1 Drums(1-drum-180kg) from previous trading day. Mentha oil production in India is likely to decline by 20% due to lower plantings of the aromatic herb on falling prices in the last two years. In fact, huge carryover stocks from the previous year coupled with huge capacity built up of synthetic mint, a substitute of mentha oil, also discouraged farmers to bring less area under mentha plant this year. Trade sources estimate total area under mentha planting reported a decline of 20% to 1.75 lakh ha this season resulting into a proportionate fall in mentha oil production this year. In addition, farmer pays 5%VAT plus 1.5% Mandi Tax when selling mint or mint oil. These add on taxes on mint is only applicable in UP. Technically market is under fresh selling as market has witnessed gain in open interest by 0.49% to settled at 10770 while prices down -15.8 rupee, now Menthaoil is getting support at 883.3 and below same could see a test of 874 level, And resistance is now likely to be seen at 907.9, a move above could see prices testing 923.2.

Trading Ideas:

Menthaoil trading range for the day is 874-923.2.

Mentha oil spot at Sambhal closed at 1011.00 per 1kg. Spot prices is remain unchangeby Rs.0.00/-.

Mentha oil prices ended with losses due to demand concerns from consuming industries in the spot market.

Besides, ample stocks in the physical markets following increased arrivals from Chandausi in Uttar Pradesh too weighed on mentha oil prices.

At Barabanki market estimated market supply was at 300 Drums(1-drum-180kg), higher by 260 Drums(1-drum-180kg) from previous day’s arrivals.