Menthaoil September contract dropped Rs 4.6 and settled at Rs 1239.3 on weakened due to profit booking after prices gained driven by pick up in demand at spot market due to increasing export and domestic buying. Reports of a fall in production had been keeping the sentiments firm. Lower arrivals and rising export demand and domestic demand from the Pharmaceutical Industries have been there. On August 8th September total stock of mentha oil at MCX-monitored warehouses at Chandausi was 51,795 kg of which 51,795 kg was physical stock and the demat stock was zero. At Barabanki, the total stock was 9,44,123 kg of which, physical stock accounted for 9,44,123 and demat stock again was nil.  The contract made intraday low of Rs 1236 a kg and high of Rs 1259.8 a kg with the volume of 2507 and total open interest for the same contact was at 3477.Now support for the menthol is seen at 1230.3 and below could see a test of 1221.2. Resistance is now likely to be seen at 1254.1, a move above could see prices testing 1268.8.

Trading Ideas:

Menthaoil trading range is 1221.2-1269.

Menthaoil spot is at 1380/-.Spot market is up by Rs.10/-.

Mentha oil prices ended down on weakened due to profit booking after prices gained due to pickup in demand

Lower arrivals and rising demand from the Pharmaceutical Industries have been there

On August 8th September total stock of mentha oil at MCX warehouses at Chandausi was 51,795 kg