Menthaoil settled down -0.21% at 815.3 due to ample stocks position at the physical market. Further, favorable crop conditions and expectations of higher production from the major producing belts too influenced the commodity prices. However, pickup in demand from the consuming industries in spot markets against restricted arrivals from the major producing area of Chandausi in Uttar Pradesh capped losses in mentha oil prices to some extent. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. Sources mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. The prices will also be pressurized by waning offtake by natural mentha oil exporters. The sources suggested that steady supplies of synthetic mentha oil have reduced the demand of natural mentha oil in local mandies. Sources estimated that the current year mentha oil production will be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. Mentha oil Production this year expected higher at more than 60000 tons versus 50000 tons last year due to higher demand from pharmaceutical industries. Technically market is under fresh selling as market has witnessed gain in open interest by 0.66% to settled at 5914 while prices down -1.7 rupee, now Menthaoil is getting support at 813.2 and below same could see a test of 811 level, And resistance is now likely to be seen at 818.4, a move above could see prices testing 821.4.

Trading Ideas:

Menthaoil trading range for the day is 811-821.4.

Menthaoil spot is at 930/-. Spot market remains flat.

Mentha oil edged lower due to ample stocks position at the physical market.

Further, favorable crop conditions and expectations of higher production from the major producing belts too weighed.

The total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states.