Menthaoil April contract dropped Rs 93.7 and settled at Rs 2249.5 on poor industrial demand amid higher production concerns. Higher sowing from the producing regions also pressurized the futures to trade lower. Weak demand and higher production aspects kept sentiments weak for Mentha Oil as it crashed to touch the Lower Circuit 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. Rising export demand amidst lower stocks however are expected to support the prices in the medium term. The next crop is expected to arrive in June and till then arrivals are expected to remain weak 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 2249.5 a kg and high of Rs 2346.6 a kg with the volume of 3312 and total open interest for the same contact was at 4885.Now support for the menthol is seen at 2217.1 and below could see a test of 2184.8. Resistance is now likely to be seen at 2314.2, a move above could see prices testing 2379.

Trading Ideas:

Mentha oil trading range for the day is 2184.8-2379.

Menthaoil spot is at 2410/-.Spot market is down by Rs.80/-.

Mentha oil continued downtrend on poor industrial demand amid higher production concerns

Higher sowing from the producing regions also pressurized the futures to trade lower.

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