Mentha oil dropped on better sowing conditions and weak export demand

Mentha oil yesterday settled down by -0.6% at 961.6 on better sowing conditions in UP and Bihar and weak export demand. The recent period of rain in Uttar Pradesh and Bihar has been beneficial to planting efforts. The forecast of above-average rainfall in May would be beneficial to Mentha’s seeding efforts. Rising menthol imports, as well as China’s limited purchasing, will put pressure on pricing. Mentha exports during Apr-Mar 2023, dropped by 10.39 per cent to 2,430.49 tonnes as compared to 2,712.39 tonnes exported during Apr-Mar 2022. In March 2023 around 202.95 tonnes of Mentha was exported as against 210.78 tonnes in February 2023 showing a drop of 3.71%.

In March 2023 around 202.95 tonnes of Mentha was exported as against 218.78 tonnes in March 2022 showing a drop of 7.24%. Many states have seen gutkha and pan masala bans which have seen a lower demand from the pan masala industry. The production of Mentha oil was historically high in 2020-21, the area remained almost similar last year but the yields were lower which affected the production. In the current year, production is to fall to around 46,238 MT due to a sharp fall in area and loss in yields following severe summer heat. which will come close to 14% down in the year 20-21. In the Sambhal spot market, Mentha oil dropped by -4 Rupees to end at 1128 Rupees per 360 kgs.

Technically market is under fresh selling as the market has witnessed a gain in open interest by 6.77% to settle at 568 while prices are down -5.8 rupees, now Mentha oil is getting support at 958.5 and below same could see a test of 955.3 levels, and resistance is now likely to be seen at 966.9, a move above could see prices testing 972.1.

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