Menthaoil September contract gained Rs 2.2 and settled at Rs 1357.2 due
to receding supplies from cultivators against strong offtake by
exporters and industry players. The total arrivals stood at 400-450
drums. This is mainly due to restricted supplies by cultivators at lower
levels along with direct procurement by exporters and industry players.
While strong gains were also seen in mentha oil exports from the last
one year. As per latest release from Spice Board of India, the export
value of mint products augmented by 31 per cent to Rs 2,223.72 crore in
2011-12 fiscal from Rs 1,696.79 crore in the 2010-11 fiscal, despite a
decline of 15 per cent in its volume to 14,750 tonnes from 17,450 tonnes
in the same period. The unit value of mint produced rose to Rs 1,507.61
per kg last fiscal from Rs 972 per kg in 2010-11 fiscal. Overall
trading activities remained low but traders expect pickup in demand in
the coming weeks Better production prospects have been keeping overall
sentiments weak. Production this year likely to exceed 50000 tonnes as
per sources vs 38000 tonnes last year. Higher sowing activities due to
the high rates obtained by farmers last year resulted in higher
production this year. The contract made intraday low of Rs 1354.1 a kg
and high of Rs 1369 a kg with the volume of 3255 and total open interest
for the same contact was at 6549. Now support for the menthol is seen
at 1351.2 and below could see a test of 1345.2. Resistance is now likely
to be seen at 1366.1, a move above could see prices testing 1375.

Trading Ideas:

Mentha oil trading range for the day is 1345.2-1375.

Menthaoil spot is at 1527/-.Spot market is up by Rs. 2/-.

Mentha oil gained due to receding supplies from cultivators against strong offtake by exporters.

The total arrivals stood at 400-450 drums mainly due to restricted supplies

Production this year likely to exceed 50000 tonnes as per sources vs 38000 tonnes last year.