Mentha Oil settled flat as prices continued to be pressurized by the recent ban on Gutka in some states. But with winter season demand set to pick up in coming months, the downtrend seems likely for short time only. Reports of ban in Pan Masala in some states had been keeping pressure on the market rates over last few days. Overall trading activities remained low but traders expect pick up 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. In Uttar Pradesh, the largest producer of Mentha Oil in India, the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha. Higher stocks in the mandis from higher arrivals also kept pressure on the market sentiments. However traders also expect the demand to rise over next few months once the prices stabilize at the lower levels as the arrivals get over. The contract made intraday low of Rs 1212.1 a kg and high of Rs 1234.1 a kg with the volume of 4196 and total open interest for the same contact was at 4905.Now support for the menthol is seen at 1218 and below could see a test of 1204. Resistance is now likely to be seen at 1240, a move above could see prices testing 1248.

Trading Ideas:

Mentha oil trading range for the day is 1204-1248.

Menthaoil spot is at 1407/-.Spot market is flat.

Mentha oil settled flat as prices continued to be pressurized by the recent ban on Gutka in some states.

Higher stocks in the mandis from higher arrivals also kept pressure on the market sentiments

Better production prospects have been keeping overall sentiments weak.