Menthaoil on MCX settled up 1.13% at 868.1 on the back of surging demand from consuming industries at the spot market. Further, restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also added support to mentha oil prices. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Exports of mint products stood at 21,150 tonne in FY16 valued at RS. 2,577.59 crore against 25,750 tonne valued at RS. 2,689.25 crore in FY15.

Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year. But, rainfalls later improved overall scenario that got worsened with scorching heat waves in May. Hence, overall mentha oil output for 2016-17 is now revised upwards at 32,000 tonnes. At Rampur market sources reported arrivals at 5 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. At Bareilly market, sources reported arrivals at 1 Drums(1-drum-180kg), lower by 1 Drums(1-drum-180kg) as compared to previous day.

                                Trading Ideas
*              Menthaoil trading range for the day is 851.2-879.8.
*              Mentha oil spot at Sambhal closed at 998.60 per 1kg. Spot prices is down by Rs.-2.50/-.
*              Mentha oil prices gained on the back of surging demand from consuming industries at the spot      market.
*              At Chandausi market, total arrivals are at 15 Drums(1-drum-180kg), higher by 5 Drums(1-drum-180kg) as against previous day.