Mentha oil settled up by 0.23% at 943.4 on account of lower arrivals from the major producing belts along with lower production. Further, expectations of pick up in export and domestic demand in coming weeks too added support to mentha oil prices. As per latest reports Mentha Oil export in 2014-15 exceeded the targeted 21k tonnes by 23% at 25750 tonnes. It was 24500 tonnes in 2013-14. As per the market source, Mentha production this year is likely to fall to below 40k tonnes vs more than 50k tonnes last year. Lower price realizations led to lower sowing. Again, adverse weather too affected the crop. Even as arrivals continue, demand is also rising-thus lending support to the prices. Mentha Oil found good support at the lower levels as demand started picking up in the mandis after the recent fall in prices. Sources indicate rates have fallen to very low levels over last few weeks and further fall may be limited as domestic and export demand pick up. At Rampur market sources reported arrivals at 7 Drums(1-drum=180kg), steady as against previous day's arrival. At Bareilly market arrivals were reported at 1 Drums(1-drum-180kg), unchanged as compared to previous day's arrival. At Barabanki market sources reported arrivals at 300 Drums(1-drum-180kg), steady as against previous day's arrival. At Sambhal market estimated market supply was at 50 Drums(1-drum=180kg), steady as against previous day's arrival. Mentha oil spot at Sambhal closed at 1048.60 per 1kg. Spot prices is up by Rs. 1.80/-.Technically market is under short covering as market has witnessed drop in open interest by -26.15% to settled at 6717, now Menthaoil is getting support at 938.2 and below same could see a test of 933 level, And resistance is now likely to be seen at 948.6, a move above could see prices testing 953.8.

Trading Ideas:

Menthaoil trading range for the day is 933-953.8.

Mentha oil spot at Sambhal closed at 1048.60 per 1kg. Spot prices is up by Rs. 1.80/-.

Mentha oil prices gained on account of lower arrivals from the major producing belts along with lower production.

Further, expectations of pick up in export and domestic demand in coming weeks too added support to mentha oil prices.

As per latest reports Mentha Oil export in 2014-15 exceeded the targeted 21k tonnes by 23% at 25750 tonnes.