Mentha oil on MCX settled up by 0.56% at 1027.7 amid uptick in physical demand for mentha oil in the domestic 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 Sambhal market, estimated market supply was at 60 Drums(1-drum=180kg), higher by 10 Drums(1-drum=180kg) from previous day’s arrivals. At Barabanki market, arrivals were reported at 100 Drums(1-drum-180kg), steady as against previous day’s arrival. At Bareilly market, estimated market supply was at 5 Drums(1-drum-180kg), higher by 4 Drums(1-drum-180kg) from previous trading day. At Chandausi market, estimated market supply was at 10 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) from previous trading day. Mentha DMO is offered weak at Rs. 840 per Kg, down by 0.59 per cent as compared to previous day. Mentha oil spot at Sambhal closed at 1129.90 per 1kg. Spot prices is up by Rs.5.40/-.Technically market is under short covering as market has witnessed drop in open interest by -1.09% to settled at 3443, now Menthaoil is getting support at 1023.3 and below same could see a test of 1019 level, And resistance is now likely to be seen at 1030.6, a move above could see prices testing 1033.6.

Trading Ideas:

Menthaoil trading range for the day is 1019-1033.6.

Mentha oil spot at Sambhal closed at 1129.90 per 1kg. Spot prices is up by Rs.5.40/-.

Mentha oil gained amid uptick in physical demand for mentha oil in the domestic 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, estimated market supply was at 60 Drums(1-drum=180kg), higher by 10 Drums(1-drum=180kg) from previous day’s arrivals.