Mentha oil on MCX settled up by 0.55% at 1018.2 on the back of pick-up in demand at domestic spot market. Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also provided support to mentha oil prices. However upside seen limited on the speculation the area under cultivation can incerese this year resulting good production. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper, versus 23000 of total exports last year. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks, thus whenever requirement arises, industry people will be purchasing from the farmers. This will be another bullish price driver. Indian markets had reported higher sowing for current year. At Sambhal market sources reported arrivals at 60 Drums(1-drum=180kg), steady as against previous day’s arrival. At Bareilly market arrivals were reported at 1 Drums(1-drum-180kg), down by 4 Drums(1- drum-180kg) from previous trading day. At Chandausi market Total arrivals are at 10 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) as compared to previous day. Mentha oil spot at Sambhal closed at 1121.40 per 1kg. Spot prices is up by Rs. 3.00-.Technically market is under fresh buying as market has witnessed gain in open interest by 33.93% to settled at 2976 while prices up 5.6 rupees, now Menthaoil is getting support at 1011.7 and below same could see a test of 1005.1 level, And resistance is now likely to be seen at 1022.9, a move above could see prices testing 1027.5.

Trading Ideas

# Menthaoil trading range for the day is 1005.1-1027.5.

# Mentha oil spot at Sambhal closed at 1121.40 per 1kg. Spot prices is up by Rs. 3.00-.

# Mentha oil prices gained on the back of pick-up in demand at domestic spot market.

# Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also provided support to mentha oil prices.

# At Bareilly market arrivals were reported at 1 Drums(1-drum-180kg), down by 4 Drums(1-drum-180kg) from previous trading day.