Menthaoil June contract dropped Rs 51.7 and settled at Rs 1241.2. due to rising arrivals from the fresh crop amid higher production estimates. Traders expect some more corrections to prices that have risen a lot over last few days. Sentiments likely to remain slight weak till arrivals continue as no strong demand is expected soon. Production this year likely to exceed 50000 tonnes as per sources vs 38000 tonnes last year. 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. Traders expect an overall Bullish trend to prevail in the markets as arrivals in the mandis remained moderately low. The contract made intraday low of Rs
1241.2 a kg and high of Rs 1286.1 a kg with the volume of 2192 and total open interest for the same contact was at 1880. Now support for the menthol is seen at 1226.2 and below could see a test of 1211.3. Resistance is now likely to be seen at 1271.1, a move above could see prices testing 1301.1.
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Trading Ideas:

Mentha oil trading range for the day is 1211.3-1301.1.

Menthaoil spot is at 1350/-.Spot market is down by Rs. 105/-.

Mentha oil ended lower due to rising arrivals from the fresh crop amid higher production estimates.

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

The total arrivals of mentha oil stood at 350-400 drums.