Mentha oil on MCX settled up by 1.7% at 1044.9 on the back of rising demand at the spot market. Besides, tight stocks position following restricted arrivals from major producing belts of Uttar Pradesh also extended support to mentha oil prices. However upside seen limited on the speculation the area under cultivation can increase 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 Sambhal market arrivals were reported at 60 Drums(1-drum=180kg), unchanged as compared to previous day’s arrival. At Rampur market arrivals were reported at 2 Drums(1-drum=180kg), lower by 2 Drums(1-drum=180kg) as against previous day. At Bareilly market total arrivals are at 1 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. Mentha oil spot at Sambhal closed at 1153.30 per 1kg. Spot prices was up by Rs. 7.70/-.Technically now Menthaoil is getting support at 1033.8 and below same could see a test of 1022.8 level, And resistance is now likely to be seen at 1051.7, a move above could see prices testing 1058.6.

Trading Ideas:

# Menthaoil trading range for the day is 1022.8-1058.6.

# Mentha oil spot at Sambhal closed at 1153.30 per 1kg. Spot prices was up by Rs. 7.70/-.

# Mentha oil gained on the back of rising demand at the spot market.

# Besides, tight stocks position following restricted arrivals from major producing belts of Uttar Pradesh also extended support to mentha oil prices.

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