Menthaoil on MCX settled up 1.02% at 1042.6 taking positive cues from spot market on rising demand. Besides, fall in supplies from major producing belts of Chandausi in Uttar Pradesh also added support to mentha oil prices uptrend. 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. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks, thus whenever requirement arises, industry people will be purchasing from the farmers. Trade sources estimate that total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season resulting into a proportionate fall in Mentha oil production this year. At Chandausi market mentha Oil is trading high at Rs. 1062 per Kg, higher by 0.19 per cent from previous day’s price level. Total arrivals are at 15 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) as against previous day. Mentha Flakes at Chandausi market is quoted strong at Rs. 1140 per Kg, higher by 0.44 per cent from previous day. At Barabanki market estimated market supply was at 100 Drums(1-drum-180kg), higher by 40 Drums(1-drum-180kg) as against previous day. At Sambhal market , sources reported arrivals at 60 Drums(1-drum=180kg), lower by 10 Drums(1-drum=180kg) as compared to previous day. Technically market is under short covering as market has witnessed drop in open interest by -2.48% to settled at 3428, now Menthaoil is getting support at 1034.2 and below same could see a test of 1025.8 level, And resistance is now likely to be seen at 1047.9, a move above could see prices testing 1053.2.

Trading Ideas:

Menthaoil trading range for the day is 1025.8-1053.2.

Mentha oil spot at Sambhal closed at 1137.50 per 1kg. Spot prices is up by Rs.12.10/-.

Mentha oil ended higher taking positive cues from spot market on rising demand.

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

At Chandausi market total arrivals are at 15 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) as against previous day