Jun 22 2009 3:30PM
MUMBAI, June 22 (Reuters) - Indian mentha oil futures may trade sideways with a positive bias this week on reports farmers have trimmed area under the medicinal crop, but weak spot demand may weigh on prices, analysts said.
"Preliminary reports of lower acreage in Uttar Pradesh are offsetting sluggish demand," Sandeep Joon, an analyst with SMC Comtrade, said.
The northern state of Uttar Pradesh is the biggest mentha producer in the country.
At 3:12 p.m., the June contract on the Multi Commodity Exchange was up 0.02 percent at 514.2 rupees a kg, while prices at India's biggest spot market -- Chandausi in Uttar Pradesh -- edged down 0.85 percent to 542 rupees.
Exports of mint products -- mentha oil, menthol and menthol crystals -- eased 2.84 percent to 20,500 tonnes in April-March from a year ago, Spices Board data showed.
The June contract may derive support at 510 rupees and face resistance at 520 rupees, Joon added.
India, the world's biggest mentha oil producer and exporter, produced 32,000 tonnes in 2008, according to industry estimates.
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