Menthaoil settled flat as some support seen on account of demand of end users and stockiest in local mandies with the anticipation of weak production next year. Market sources suggested that strong demand is mainly on the account of possibility of poor sowing acreage in the next season as a weak price trend in the current year will divert the farmer's interest towards other crops. This will also instigate the fresh buying of long term investors from lower levels. Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries. The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year. India's production of mentha oil may touch 60000 tons this year. Area under crop may touch 2.10 lakh ha vs 1.75 lakh ha last year. For the medium term, high stock levels would mean subdued price. Steady demand was mainly seen in the wake of anticipation of poor sowing acreage in the season as a weak price trend in the current year will divert the farmer's interest towards other crops. Therefore, low prices of mentha oil encourage the long term investor's demand in local mandies. Technically market is under long liquidation as market has witnessed drop in open interest by -0.17% to settled at 6375 while prices down -0.9 rupee, now Menthaoil is getting support at 861.4 and below same could see a test of 858.8 level, And resistance is now likely to be seen at 868.3, a move above could see prices testing 872.6.

Trading Ideas:

Menthaoil trading range for the day is 859.2-873.

Menthaoil spot is at 963/-. Spot market is down by Rs. 5/-.

Menthaoil settled flat as some support seen on account of demand of end users and stockiest

Strong demand is mainly on the account of possibility of poor sowing acreage in the next season

The area under crop this year expected higher at 2.10 lakh hectares versus 1.75 lakh hectares last year.