Mentha oil on MCX settled up by 0.5% at 1009.2 amid pick-up in demand at domestic spot market. Further, tight supplies from major producing belts of Chandausi in Uttar Pradesh, too fuelled the uptrend. However upside seen limited on the speculation the area under cultivation can incerese this year resulting good production. Total production of mentha oil during the current season is 32,000-34,000 tonnes against preliminary estimates of around 40,000 tonnes. Unfavourable weather conditions during harvesting period led to the drop in production. On the demand side, the seasonal demand emerges during winter season, especially from the pharma sector. 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. At Chandausi market arrivals were reported at 10 Drums(1-drum-180kg), lower by 5 Drums(1-drum-180kg) from previous day’s arrivals. Mentha DMO is offered at Rs. 825 per Kg, steady against previous close. Mentha Flakes at Chandausi market is quoted firm at Rs. 1130 per Kg, up by 0.44 per cent from previous day. At Barabanki market sources reported arrivals at 60 Drums(1-drum-180kg), down by 40 Drums(1-drum-180kg) from previous day’s arrivals. Mentha oil spot at Sambhal closed at 1123.80 per 1kg. Spot prices is up by Rs. 4.20/-.Technically now Menthaoil is getting support at 1002.9 and below same could see a test of 996.5 level, And resistance is now likely to be seen at 1014.2, a move above could see prices testing 1019.1.

Trading Ideas:

# Menthaoil trading range for the day is 996.5-1019.1.

# Mentha oil spot at Sambhal closed at 1123.80 per 1kg. Spot prices is up by Rs. 4.20/-.

# Mentha oil prices gained amid pick-up in demand at domestic spot market.

# However upside seen limited on the speculation the area under cultivation can incerese this year resulting good production.

# At Barabanki market sources reported arrivals at 60 Drums(1-drum-180kg), down by 40 Drums(1-drum-180kg) from previous day’s arrivals.