Mentha oil on MCX settled up by 0.48% at 1022 amid rising demand at spot market. Further, tight stocks position on restricted supplies from major producing belts of Chandausi in Uttar Pradesh, too supported mentha oil prices. 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. This will be another bullish price driver. Indian markets had reported higher sowing for current year. At Chandausi market estimated market supply was at 15 Drums(1-drum-180kg), higher by 5 Drums(1-drum-180kg) as against previous day. Mentha DMO is offered weak at Rs. 845 per Kg, lower by 0.24 per cent as against previous day. Mentha Flakes at Chandausi market is quoted at Rs. 1130 per Kg, steady as against previous close. At Sambhal market arrivals were reported at 50 Drums(1-drum=180kg), lower by 10 Drums(1-drum=180kg) as compared to previous day. Mentha oil spot at Sambhal closed at 1124.50 per 1kg. Spot prices is down by Rs.-0.20/-.Technically market is under short covering as market has witnessed drop in open interest by -0.91% to settled at 3481 while prices up 4.9 rupee, now Menthaoil is getting support at 1017.4 and below same could see a test of 1012.7 level, And resistance is now likely to be seen at 1025.6, a move above could see prices testing 1029.1.

Trading Ideas:

Menthaoil trading range for the day is 1012.7-1029.1.

Mentha oil spot at Sambhal closed at 1124.50 per 1kg. Spot prices is down by Rs.-0.20/-.

Mentha oil prices ended with gains amid rising demand at spot market

Further, tight stocks position on restricted supplies from major producing belts of Chandausi in Uttar Pradesh, too supported mentha oil prices.

At Sambhal market arrivals were reported at 50 Drums(1-drum=180kg), lower by 10 Drums(1-drum=180kg) as compared to previous day.