Menthaoil on MCX settled up 0.13% at 867.5 amid increasing demand from major consuming industries in the domestic spot market. Further, tight stocks position on restricted supplies from producing regions, too supported mentha oil prices. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Exports of mint products stood at 21,150 tonne in FY16 valued at RS. 2,577.59 crore against 25,750 tonne valued at RS. 2,689.25 crore in FY15. Mentha oil prices have fallen almost more than 11% since last 1month from 992.80 level to test 880 level this week due to the fund crisis in the market and lower Chinese demand for Indian Mentha oil. Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year. But, rainfalls later improved overall scenario that got worsened with scorching heat waves in May. Hence, overall mentha oil output for 2016-17 is now revised upwards at 32,000 tonnes. At Chandausi market total arrivals are at 12 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Rampur market total arrivals are at 5 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. Sambhal market sources reported arrivals at 125 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. Technically now Menthaoil is getting support at 863.1 and below same could see a test of 858.7 level, And resistance is now likely to be seen at 871.8, a move above could see prices testing 876.1.

Trading Ideas:

Menthaoil trading range for the day is 858.7-876.1.

Mentha oil spot at Sambhal closed at 1014.10 per 1kg. Spot prices is up by Rs. 4.50/-.

Mentha oil prices ended with gains amid increasing demand from major consuming industries in the domestic spot market.

Further, tight stocks position on restricted supplies from producing regions, too supported mentha oil prices.

China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports.