Mentha oil prices dropped on better sowing prospects.

Mentha oil yesterday settled down by -0.72% at 898.1 on better sowing prospects. Reports of increased acreages and sluggish export of menthol will weigh on prices. Rising menthol imports, as well as China’s limited purchasing, will put pressure on pricing. Mentha exports during Apr 2023, dropped by 42.52 per cent to 97.85 tonnes as compared to 170.22 tonnes exported during Apr 2022. In April 2023 around 97.85 tonnes of Mentha was exported as against 202.95 tonnes in March 2023 showing a drop of 51.78%.

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 -18.9 Rupees to end at 1033.4 Rupees per 360 kgs.

Technically market is under long liquidation as the market has witnessed a drop in open interest by -17.81% to settle at 383 while prices are down -6.5 rupees, now Mentha oil is getting support at 893.1 and below same could see a test of 888.1 levels, and resistance is now likely to be seen at 903.5, a move above could see prices testing 908.9.