Mentha oil rose tracking a firm trend at spot market on strong retailers and export demand. Sentiment improved further due to restricted arrivals from major producing regions. Good demand from the International markets and the domestic pharmaceutical Industries, also have added to the spurt in the prices. Prices seem to find some support at these levels but lack of strong demand amidst high stocks prevented any strong upsurge in rates. Though some recovery from these lower rates is not ruled out, traders anticipate the uptrend to be limited on the back of higher stocks and better crop. Bearish trend is likely to continue in mentha oil futures due to weak demand by traders and strong production estimates for the current year. Moreover, the total opening stocks of the current year were also estimated higher at 12 thousand tonnes against 8 thousand tonnes that were reported last year. Market sources suggested that the total production of mentha oil is estimated around 54-55 thousand tonnes in the current year against 45 thousand tonnes of the last year. This is mainly due to the better price realization and favourable crop conditions. Technically market is under short covering as market has witnessed drop in open interest by -5.82% to settled at 4388 while prices up 0.4 rupee, now Menthaoil is getting support at 850 and below same could see a test of 846.6 level, And resistance is now likely to be seen at 858.7, a move above could see prices testing 864.

Trading Ideas:

Menthaoil trading range for the day is 846.7-864.1.

Menthaoil spot is at 953/-. Spot market remains unchanged.

Mentha oil rose tracking a firm trend at spot market on strong retailers and export demand.

Sentiment improved further due to restricted arrivals from major producing regions.

Technically market is under short covering as market has witnessed drop in open interest by -5.82% to settled at 4388