Menthaoil dropped due to reports of improved crop progress.

Mentha oil yesterday settled down by -0.82% at 872.6 due to reports of improved crop progress. Yield is likely to increase due to favourable weather conditions in major producing states. Moreover, reports of slack export of menthol will put pressure on prices. Rising menthol imports, as well as China’s limited purchasing, will put pressure on pricing. Mentha exports during Apr-May 2023, dropped by 51.60 per cent to 183.98 tonnes as compared to 380.12 tonnes exported during Apr-May 2022. In May 2023 around 86.13 tonnes of Mentha was exported as against 97.85 tonnes in April 2023 showing a drop of 13.60%. 

In May 2023 around 86.13 tonnes of Mentha was exported as against 209.90 tonnes in May 2022 showing a drop of 58.96%. Many states have seen gutkha and pan masala ban 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 remains unchanged by 0 Rupees to end at 1026.3 Rupees per 360 kgs.

Technically market is under long liquidation as the market has witnessed a drop in open interest by -8.66% to settle at 517 while prices are down -7.2 rupees, now Mentha oil is getting support at 868.7 and below same could see a test of 864.7 levels, and resistance is now likely to be seen at 878.2, a move above could see prices testing 883.7.