Menthol Oil yesterday traded with the negative node and settled -4.00% down at 1275.40 and expected to trade bearish on account of selling by the market participants anticipating fresh arrivals to improve in the coming days. With south-west monsoon making a slow advancement into the interior parts, it would be crucial to monitor its progress towards the northern parts in the coming days. Fresh arrivals from the major producing regions also kept the futures prices in negative zone. Expectations of higher production estimates in the current year also influenced mentha oil prices. The fall in mentha oil prices at futures trade was mostly due to profit-booking by speculators amid a weak trend at spot markets on subdued demand from the pharmaceutical industries. Fresh arrivals of around 1100-1200 drums were reported in the major mandies of Sambhal and Barabanki of UP. As per the expectation of the traders, last year mentha oil production was around 32,000 tons, which may be around 58,000-60,000 tons this year. On 21st June total stock of mentha oil at MCX-monitored warehouses at Chandausi was 30,220 kg of which 18, 715 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 1, 65, 967 kg of which, physical stock accounted for 1, 45,454 and demat stock was 20, 513 kg. In yesterday's trading session menthol oil has touched the low of 1275.4 after opening at 1316, and finally settled at 1275.4. For today's session market is looking to take support at 1260.3, a break below could see a test of 1245.1 and whereas resistance is now likely to be seen at 1305.7, a move above could see prices testing 1335.9.
Mentha oil trading range for the day is 1245.2-1336.
Menthaoil spot is at 1378/-.Spot market is down by Rs. 32/-.
Menthol oil dropped nearly -4.00% on account of selling by the market participants anticipating fresh arrivals
Profit-booking seen amid a weak trend at spot markets on subdued demand from the pharmaceutical industries.
Expectations of higher production estimates in the current year also influenced mentha oil prices.
SELL MENTHA OIL JUNE BELOW 1270 SL 1285 TGT 1256-1238. MCX
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