Menthaoil June contract dropped Rs 54.9 and settled at Rs 1318 due to strong production estimates in the current year along with fresh arrivals in major mandies. Traders mentioned that the total production of mentha oil in the current year is estimated at 52000 tonnes against 38000 tonnes that were reported last year. This is mainly due to strong sowing acreage in the current year. Moreover, the recovery of mentha oil at major producing states is estimated at 6-7 kgs per bigha against 4-5 kgs that were reported last year. Traders also stated that fresh arrivals of around 950-1000 drums were reported in the major mandies of Sambhal and Barabanki of Uttar Pradesh. On 14th June total stock of mentha oil at MCX-monitored warehouses at Chandausi was 50,723 kg of which 39, 218 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 2, 29, 690 kg of which, physical stock accounted for 2, 09,177 and demat stock was 20, 513 kg. The contract made intraday low of Rs 1318 a kg and high of Rs 1357.9 a kg with the volume of 3018 and total open interest for the same contact was at 1884.Now support for the menthol is seen at 1304.7 and below could see a test of 1291.4. Resistance is now likely to be seen at 1344.6, a move above could see prices testing 1371.2.
Mentha oil trading range for the day is 1291.4-1371.2.
Menthaoil spot is at 1440/-.Spot market is down by Rs.25/-
Menthe oil ended lower due to strong production estimates along with fresh arrivals in major mandies.
The recovery of mentha oil at major producing states is estimated at 6-7 kgs per bigha
Fresh arrivals of around 950-1000 drums were reported in major mandies of Sambhal and Barabanki of Uttar Pradesh.