Mentha Oil yesterday settled up 3.95% at 959.00 rebounding from the last weeks fall after the rain seen in the growing areas of UP affected the arrivals in the mandis of the new crop. Moreover trend remain weak and bearish as Mentha oil trading production may increase by 20 per cent and may be around 55, 000-60,000 tons. Also in the line of last year now Karnataka became the 26th state to ban sale, manufacture, storage and distribution of gutka and paan masala. The ban was announced on Friday with immediate effect. It is also in place in five union territories. Due to higher rates seen the last year amidst higher demand from pharmaceutical Industries last year, the area under crop this year expected higher at 2.10 lakh ha vs 1.75 lakh ha last year. Higher arrivals of the new crop (~250-300 drums) in mandis from harvesting have been keeping pressure on the market sentiments. Higher stock levels too kept prices down. Arrivals expected to be completed by mid-June. On 1st June, total stock of Mentha oil at MCX-monitored warehouses at Chandausi was 42, 434 kg of which 42, 434 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 2, 99, 540 kg of which, physical stock accounted for 2, 99, 540 and demat stock. Technically market is under fresh buying as market has witnessed gain in open interest by 5.83% to settled at 2195 while prices up 36.4 rupee, now Mentha oil is getting support at 937.60 and below same could see a test of 916.30 level, And resistance is now likely to be seen at 969.60, a move above could see prices testing 980.30.

Trading Ideas:

Mentha oil trading range for the day is 909.8-949.4.

Menthaoil spot is at 1055/-. Spot market is up by Rs.28/-.

Mentha oil rallied nearly +4% after the rain seen in the growing areas of UP affected the arrivals in the mandis of the new crop.

Karnataka became the 26th state to ban sale, manufacture, storage and distribution of gutka and paan masala.

Higher arrivals of the new crop (~250-300 drums) in mandis from harvesting have been keeping pressure on the market sentiments.