Mentha oil on MCX settled down by -0.57% at 988.8 on speculation that the area under cultivation can increase this year resulting good production. However downside seen limited amid tight stocks position on restricted supplies from producing belts. Total production of mentha oil during the current season is 32,000-34,000 tonnes against preliminary estimates of around 40,000 tonnes. Unfavourable weather conditions during harvesting period led to the drop in production. On the demand side, the seasonal demand emerges during winter season, especially from the pharma sector. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper, versus 23000 of total exports last year.

Trading Ideas:

Mentha oil trading range for the day is 974-1012.2.

Mentha oil spot at Sambhal closed at 1133.30 per 1kg. Spot prices was up by Rs.7.80/-.

Mentha oil prices dropped on speculation that the area under cultivation can increase this year resulting good production.

However downside seen limited amid tight stocks position on restricted supplies from producing belts. 

Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year.

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