Menthaoil on MCX settled up 0.95% at 1027.9 on the back of pick-up in demand at domestic spot market. Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also provided support to mentha oil prices. However upside seen limited on the speculation the area under cultivation can incerese this year resulting good production. 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. Indian markets had reported higher sowing for current year. At Chandausi market estimated market supply was at 10 Drums (1-drum-180kg), steady as against previous day’s arrival. Mentha DMO is offered lower at Rs. 810 per Kg, down by 2.41 per cent as compared to previous day. Mentha Flakes at Chandausi market is quoted weak at Rs. 1135 per Kg, down by 0.44 per cent from previous day’s price level. Mentha Crystal at Chandausi market is offered at Rs. 1170 per Kg, unchanged as compared to previous close. Technically market is under fresh buying as market has witnessed gain in open interest by 12.47% to settled at 3347 while prices up 9.7 rupees, now Menthaoil is getting support at 1020.1 and below same could see a test of 1012.2 level, And resistance is now likely to be seen at 1033.9, a move above could see prices testing 1039.8.

Trading Ideas:

Menthaoil trading range for the day is 1012.2-1039.8.

Mentha oil spot at Sambhal closed at 1127.20 per 1kg. Spot prices was up by Rs.5.80/-.

Mentha oil gained on the back of pick-up in demand at domestic spot market.

Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also provided support.

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