Menthaoil May contract dropped Rs 15.2 and settled at Rs 953.3 on higher production expectation. Sources said mentha oil crop in UP is well and production may be 1.5 times than last year. Mentha oil prices are down on higher production expectation.  The total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year. This is mainly due to the better price realization and favourable crop conditions. Moreover, the total opening stocks of Mentha oil are expected to reach 13000-15000 tonnes in the next year. This may also convene the sufficient supplies of mentha oil next year. On the demand side, Mentha oil consumption might incite significant decline in the current year due to ban imposed by various state governments on gutka sale along with the sluggish export demand of mint products in the coming months. In Rampur, mentha oil (68 GLC) quoted at Rs 1,070 per kg, in Chandausi Rs 1,075 per kg, in Sambhal at Rs 1,075 a kg, in Barabanki at Rs 1,000 a kg. On 29th April, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 27, 627 kg of which 1, 27, 627 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 4, 86, 793 kg of which, physical stock accounted for 4, 86, 793. The contract made intraday low of Rs 952.2 a kg and high of Rs 968.5 a kg with the volume of 2523 and total open interest for the same contact was at 2438.Now support for the menthol is seen at 947.5 and below could see a test of 941.7. Resistance is now likely to be seen at 963.8, a move above could see prices testing 974.3.

Trading Ideas:

Mentha oil trading range for the day is 941.7-974.3.

Menthaoil spot is at 1055/-. Spot market is down by Rs.33/-

Menthaoil ended with losses on higher production expectation.

The total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year.

Total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 27, 627 kg of which 1, 27, 627 kg.