Mentha oil on MCX settled down on the back of weak demand from consuming industries at the domestic spot market.

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.

At Bareilly market total arrivals are at 12 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Barabanki market estimated market supply was at 150 Drums(1-drum-180kg), steady as against previous day’s arrival. Mentha oil spot at Sambhal closed at 958.90 per 1kg.

Spot prices is down by Rs.-3.60/-.Technically market is under fresh selling as market has witnessed gain in open interest by 0.17% to settled at 3519, now Menthaoil is getting support at 846.1 and below same could see a test of 842.2 level, And resistance is now likely to be seen at 856.4, a move above could see prices testing 862.8.

Trading Ideas

Menthaoil trading range for the day is 842.2-862.8.

Mentha oil spot at Sambhal closed at 958.90 per 1kg. Spot prices is down by Rs.-3.60/-.

At Rampur market arrivals were reported at 5 Drums(1-drum=180kg), down by 1 Drums(1-drum=180kg) as against previous day.