Menthaoil May contract dropped Rs 59.3 and settled at Rs 1422.2 on higher production concerns along with higher arrivals from the fresh crop. Poor demand from the domestic as well as overseas buyers also put pressure on mentha futures. According to spot market sources, the overall acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh ha this year. Sowing of Mentha in Western UP is expected to increase by 30% as compared to last year, while sowing in all regions is expected to increase by 20%.Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year. According to spot market sources, the overall acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh ha this year. Sowing of Mentha in Western UP is expected to increase by 30% as compared to last year, while sowing in all regions is expected to increase by 20%.Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year. The contract made intraday low of Rs
1422.2 a kg and high of Rs 1480.2 a kg with the volume of 2268 and total open interest for the same contact was at 1953. Now support for the menthol is seen at 1402.9 and below could see a test of 1383.5. Resistance is now likely to be seen at 1460.9, a move above could see prices testing 1499.5.

Trading Ideas:

Mentha oil trading range for the day is 1383.5-1499.5.

Menthaoil spot is at 1560/-.Spot market is down by Rs. 65/-.

Mentha oil fell on higher production concerns along with higher arrivals from the fresh crop

Poor demand from the domestic as well as overseas buyers also put pressure on prices

The overall acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh ha this year