Mentha oil gains as some short covering is expected in wake of weaker production.


Mentha oil yesterday settled up by 1.3% at 976.2 as some short covering is expected in the wake of a weaker production outlook. The forecast of above normal temperature during Apr-May is likely to affect the sowing activities adversely which will support the firmness in prices. Mentha exports during Apr-Feb 2023, dropped by 10.67 per cent to 2,227.55 tonnes as compared to 2,493.53 tonnes exported during Apr-Feb 2022. In February 2023 around 210.78 tonnes of Mentha was exported as against 233.21 tonnes in January 2023 showing a drop of 9.62%.

In February 2023 around 210.78 tonnes of Mentha was exported as against 157.90 tonnes in February 2022 showing a rise of 33.49%. 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 gained by 11.3 Rupees to end at 1143.5 Rupees per 360 kgs.

Technically market is under fresh buying as the market has witnessed a gain in open interest by 5.14% to settle at 695 while prices are up 12.5 rupees, now Mentha oil is getting support at 966.2 and below same could see a test of 956.3 levels, and resistance is now likely to be seen at 983.9, a move above could see prices testing 991.7.



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