Menthaoil settled up 0.57% at 833 tracking a firm trend at spot market on rising demand from consuming industries.  Tight stocks position in the physical market due to less arrivals from Chandausi in Uttar Pradesh further fuelled the uptrend.

Moreover, the total opening stocks of the current year were also estimated higher at 12 thousand tonnes against 8 thousand tonnes that were reported last year.  Market sources suggested that the total production of mentha oil is estimated around 54-55 thousand tonnes in the current year against 45 thousand tonnes of the last year.  This is mainly due to the better price realization and favourable crop conditions.

Moreover, the total opening stocks of the current year were also estimated higher at 12 thousand tonnes against 8 thousand tonnes that were reported last year.  Market sources suggested that strong demand is mainly on the account of possibility of poor sowing acreage in the next season as a weak price trend in the current year will divert the farmer's interest towards other crops.  Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries.

The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year.  Technically market is under short covering as market has witnessed drop in open interest by -2.64% to settled at 5453 while prices up 4.7 rupee, now Menthaoil is getting support at 827.6 and below same could see a test of 822.2 level, And resistance is now likely to be seen at 837.2, a move above could see prices testing 841.4.            

MENTHA OIL

Menthaoil trading range for the day is 822-841.2.

Menthaoil spot is at 948/-.  Spot market remains unchanged.

Mentha oil ended with gains tracking a firm trend at spot market on rising demand from consuming industries.

The total opening stocks of the current year were also estimated higher at 12 thousand tonnes against 8 thousand tonnes that were reported last year

Sources suggested that strong demand is mainly on the account of possibility of poor sowing acreage in the next season

BUY MENTHA OIL JAN ABV 845 SL 836 TGT 852-865.  MCX