Mentha oil on MCX settled down by -0.88% at 870.5 tracking sluggish demand from consuming industries in the spot market. Further, adequate stocks position on account of higher supplies from major producing regions of Chandausi in Uttar Pradesh also weighed on mentha oil prices.  

  As per latest reports Mentha Oil export in 2014-15 has surpassed targeted 21000 tons by 23% at 25750 tons. Export in 2013-14 was 24500 tons. Higher carryover stocks and lack of strong demand have prevented strong upside movement till now. At Rampur market sources reported arrivals at 6 Drums, unchanged as compared to previous day’s arrival.

The preliminary mandi source suggests that production of menthol is likely to be around 34-35000 tonnes during 2016-17 as compared to 32000 tonnes in 2015-16. While some sources estimate that total area under Mentha planting has dropped by 25% to 1.70 lakh ha this season resulting into a proportionate fall in Mentha oil production this year.

Spot prices is down by Rs.-7.00/-.Technically market is under long liquidation as market has witnessed drop in open interest by -0.28% to settled at 3241, now Menthaoil is getting support at 865.3 and below same could see a test of 860.1 level, And resistance is now likely to be seen at 878.2, a move above could see prices testing 885.9.        

                                   Trading Ideas

• Menthaoil trading range for the day is 860.1-885.9.         

• Mentha oil spot at Sambhal closed at 1002.60 per 1kg. 

• At Sambhal market total arrivals are at 80 Drums(1-drum=180kg), up by 20 Drums(1-drum=180kg) from previous day’s arrivals.