Menthaoil July contract dropped Rs -0.6 and settled at Rs 1211 as subdued demand along with peak arrivals from the producing regions could pressurize. Prospects of rains in UP could however affect the arrivals which could support the market sentiments to some extent. Better production prospects have been pressurizing the market sentiments. Demand is unlikely to rise much in the short term as traders wait for further dips before making queries in the mandis In the physical markets good arrivals are seen. However demand also reported by stockists. That may keep on giving support to the market time to time. 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 Higher sowing activities due to the high rates obtained by farmers last year resulted in higher production this year. In Uttar Pradesh, the largest producer of Mentha Oil in India, the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha Short term trend remains volatile till arrivals continue while exporters wait for further dips before initiating fresh demand in the mandis. The total arrivals stood at 1,000 drums. The contract made intraday low of Rs 1200 a kg and high of Rs 1224.5 a kg with the volume of 4192 and total open interest for the same contact was at 4488. Now support for the menthol is seen at 1199.2 and below could see a test of 1187.3. Resistance is now likely to be seen at 1223.7, a move above could see prices testing 1236.3.

Trading Ideas:

Mentha oil trading range for the day is 1187.3-1236.3.

Menthaoil spot is at 1325/-.Spot market is up by Rs. 10/-.

Mentha oil ended weak as subdued demand along with peak arrivals from the producing regions could pressurize

Sentiments likely to remain slight weak till arrivals continue as no strong demand is expected soon.

The total arrivals of mentha oil stood at 1,000 drums.