Menthaoil settled down -0.21% at 843.6 due to weak demand from consuming industries in the spot market against higher supplies from producing regions. Sentiments weakened further due to higher production prospects and reports of better sowing. Tight stocks position in the physical market due to less arrivals from Chandausi in Uttar Pradesh fuelled the uptrend. Good demand from the International markets and the domestic pharmaceutical Industries, also have added to the spurt in the prices of the commodity. However, the prices could fall again due to higher production prospects and reports of better sowing. Total production of mentha oil is estimated around 54-55 thousand tonnes in the current year against 45 thousand tonnes of the last 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. Most of the traders and end users have engaged into fresh buying in local mandies from the last one week in anticipation of strong demand in domestic and international market at lower levels. Sources stated that steady demand was mainly seen in the wake of anticipation 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. Technically market is under long liquidation as market has witnessed drop in open interest by -1.03% to settled at 6350 while prices down -1.8 rupee, now Menthaoil is getting support at 841.3 and below same could see a test of 838.9 level, And resistance is now likely to be seen at 848.4, a move above could see prices testing 853.1.

Trading Ideas:

Menthaoil trading range for the day is 839.4-853.6.

Menthaoil spot is at 955/-. Spot market is down by Rs. 6/-.

Menthaoil dropped due to weak demand from consuming industries in the spot market against higher supplies from producing regions

Sentiments weakened further due to higher production prospects and reports of better sowing.

Sources stated that steady demand was mainly seen in the wake of anticipation of poor sowing acreage in the next season