Menthaoil September contract dropped Rs 21.7 and settled at Rs 1310.6 on profit booking by the speculators due to sluggish demand in the physical markets. Increased arrivals from producing belts in Uttar Pradesh also put pressure on the prices. Selling pressure however rose at the higher levels as traders waited for dips before initiating fresh demand in the mandis. Increased arrivals from producing belts in Uttar Pradesh also put pressure on the prices. On August 22th September total stock of mentha oil at MCX-monitored warehouses at Chandausi was 70,149 kg of which 70,149 kg was physical stock and the demat stock was zero. At Barabanki, the total stock was 1,026,565 kg of which, physical stock accounted for 1,026,565 and demat stock again was nil. Total arrivals of mentha oil in the UP mandies were 800-900 drums. The contract made intraday low of Rs 1299 a kg and high of Rs 1325 a kg with the volume of 2039 and total open interest for the same contact was at 2463.Now support for the menthol is seen at 1298.1 and below could see a test of 1285.5. Resistance is now likely to be seen at 1324.1, a move above could see prices testing 1337.5.
Menthaoil trading range is 1285.5-1338.
Menthaoil spot is at 1458/-.Spot market is up by Rs.3/-.
Mentha oil dropped on profit booking due to sluggish demand in the physical markets
Increased arrivals from producing belts in Uttar Pradesh also put pressure on the prices.
Total arrivals of mentha oil in the UP mandies were 800-900 drums.
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