Menthaoil on MCX settled down -0.31% at 1042 amid muted demand in the domestic spot market. Further, ample stocks position on higher supplies from producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices. Pressure also seen on the speculation the area under cultivation can increase 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. This will be another bullish price driver. Indian markets had reported higher sowing for current year. At Bareilly market estimated market supply was at 1 Drums(1-drum-180kg), steady as against previous day’s arrival. At Rampur market arrivals were reported at 5 Drums(1-drum=180kg), lower by 1 Drums(1-drum=180kg) as compared to previous day. At Barabanki market estimated market supply was at 100 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Chandausi market mentha DMO is offered weak at Rs. 845 per Kg, down by 1.74 per cent against previous trading day. Technically market is under long liquidation as market has witnessed drop in open interest by -0.03% to settled at 3714 while prices down -3.2 rupees, now Menthaoil is getting support at 1037.3 and below same could see a test of 1032.5 level, And resistance is now likely to be seen at 1046.1, a move above could see prices testing 1050.1.

Trading Ideas:

# Menthaoil trading range for the day is 1032.5-1050.1.

# Mentha oil spot at Sambhal closed at 1158.80 per 1kg. Spot prices was down by Rs.-1.80/-.

# Mentha oil prices dropped amid muted demand in the domestic spot market.

# Further, ample stocks position on higher supplies from producing belts of Chandausi in Uttar Pradesh also weighed.

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