Menthaoil August contract gained Rs 4.7 and settled at Rs 1383 on short covering amid firm spot demand after a steep fall seen in recent past. Good demand from stockists supported the prices in the spot. According to spot market sources, the overall acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh ha this year. The overall production of Mentha is expected to increase by 30% - 40% as compared to last year. Reports of ban on Pan masala have negatively impacted the market sentiments. In Rampur, mentha oil (68 GLC) quoted at Rs 1,500 per kg, in Chandausi Rs 1,525 per kg, in Sambhal at Rs 1,525 a kg, in Barabanki at Rs 1,460 a kg. On 8th August total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 31, 224 kg of which 1, 27, 628 kg was physical stock and demat stock was 3,596 kg. At Barabanki, the total stock was 19, 82, 314 kg of which, physical stock accounted for 17, 06, 885 and demat stock was 2, 75, 428 kg. The contract made intraday low of Rs 1368 a kg and high of Rs 1395 a kg with the volume of 6568 and total open interest for the same contact was at 5519.Now support for the menthol is seen at 1369 and below could see a test of 1355. Resistance is now likely to be seen at 1396, a move above could see prices testing 1409.

Trading Ideas:

Mentha oil trading range for the day is 1355-1409.

Menthaoil spot is at 1520/-.Spot market is up by Rs.5/-.

Mentha oil ended with gains on short covering amid firm spot demand after a steep fall seen in recent past.

Good demand from stockists supported the prices in the spot.

On 8th August total stock of mentha oil at MCX warehouses at Chandausi was 1, 31, 224 kg