Menthaoil April contract dropped Rs 97.6 and settled at Rs 2343.2 on profit booking by the traders due to higher sowing from the producing regions. Expectations of higher sowing activities this year put pressure on the markets even as low stocks and lower arrivals were reported in the mandis. The next crop is expected to arrive in June and till then arrivals are expected to remain weak in the mandis.  No clear sentiments emerged for Mentha Oil as arrivals and demand remained moderate in the mandis. Short term trend looks very volatile as expected rise in sowing activities is likely to prevent rates from moving up much in the short term as new crop arrivals are expected high from end-May onwards. But reports of export queries have been noted at the lower levels. Expectations of higher sowing activities this year put pressure on the markets even as low stocks and lower arrivals were reported in the mandis. Good demand from the International markets and the domestic pharmaceutical Industries was noted. Low production and lower stock levels too supported the market sentiments. The contract made intraday low of Rs 2343.2 a kg and high of Rs 2459 a kg with the volume of 2876 and total open interest for the same contact was at 4969.Now support for the menthol is seen at 2304.6 and below could see a test of 2266. Resistance is now likely to be seen at 2420.4, a move above could see prices testing 2497.6.

Trading Ideas:

Mentha oil trading range for the day is 2266-2497.6.

Menthaoil spot is at 2490/-.Spot market is down by Rs.90/-.

Mentha oil declined on profit booking by the traders due to higher sowing from the producing regions

The next crop is expected to arrive in June and till then arrivals are expected to remain weak in the mandis

Expectations of higher sowing activities this year put pressure on the markets