Menthaoil yesterday settled down by -1.17% at 922.60 as pressure seen on higher arrivals in the mandis and pickup in demand has not been significant enough so far. Moreover trend remain weak and bearish as mentha oil trading production may increase by 20 per cent and may be around 55, 000-60,000 tons. Also in the line of last year now Karnataka became the 26th state to ban sale, manufacture, storage and distribution of gutka and paan masala. The ban was announced on Friday with immediate effect. It is also in place in five union territories. Marking World Tobacco Day, Minister of Health and Family Welfare U T Khader said: "The department will soon shut down units that manufacture these products. We are yet to decide on the penalties to be imposed on those who fail to comply with the ban." Meanwhile on 29th May, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 42, 434 kg of which 42, 434 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 2, 99, 540 kg of which, physical stock accounted for 2,99,540. Besides the new arrivals, the strong production estimates also propelled some stockiest selling from higher levels. The total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year, up almost 10-12% from the last year. This is mainly due to the better price realization and favourable crop conditions. Moreover, the total opening stocks of Mentha oil are expected to reach 13000-15000 tonnes in the next year. This may also convene the sufficient supplies of mentha oil next year. Now Menthaoil is getting support at 916.60 and below same could see a test of 906.70 levels, and resistance is now likely to be seen at 928.20, a move above could see prices testing 934.60.

MENTHA OIL

Mentha oil trading range for the day is 909.8-949.4.

Menthaoil spot is at 1024/-. Spot market is down by Rs. 14/-.

Mentha oil dropped as Karnataka became the 26th state to ban sale, manufacture, storage and distribution of gutka and paan masala.

Mentha oil trading production may increase by 20 per cent and may be around 55, 000-60,000 tons.

Total stock of mentha oil at MCX warehouses at Chandausi was 42, 434 kg of which 42, 434 kg was physical stock

SELL MENTHA OIL JUNE BELOW 925 SL 936 TGT 918-906-898. MCX