Menthaoil October contract dropped Rs 47 and settled at Rs 1128.9 on profit booking on recent ban in Gutka on some states along with poor spot demand. Reports of ban in Pan Masala in some states had been keeping pressure on the market rates over last few days. Better production prospects have been keeping overall sentiments weak. Production this year likely to exceed 50000 tonnes as per sources vs 38000 tonnes last year. Higher stocks in the mandis from higher arrivals also kept pressure on the market sentiments. However traders also expect the demand to rise over next few months once the prices stabilize at the lower levels as the arrivals get over. Mentha oil arrival reported around 550-600 drums in different spot markets. In Rampur, mentha oil (68 GLC) quoted at Rs 1,360 per kg, in Chandausi Rs 1,365 per kg, in Sambhal at Rs 1,365 a kg, in Barabanki at Rs 1,300 a kg.  On 28th September total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 13, 250 kg of which 1, 05, 334 kg was physical stock and demat stock was 7,916 kg. At Barabanki, the total stock was 2, 202, 618 kg of which, physical stock accounted for 1, 710,077 and demat stock was 4, 37, 130 kg.  The contract made intraday low of Rs 1128.9 a kg and high of Rs 1167.7 a kg with the volume of 6357 and total open interest for the same contact was at 5112.Now support for the menthol is seen at 1116 and below could see a test of 1103. Resistance is now likely to be seen at 1154.8, a move above could see prices testing 1180.6.

Trading Ideas:

Mentha oil trading range for the day is 1103-1180.6.

Menthaoil spot is at 1295/-.Spot market is down by Rs.40/-.

Mentha oil fell on profit booking on recent ban in Gutka on some states along with poor spot demand.

Reports of ban in Pan Masala in some states had been keeping pressure on the market rates over last few days.

Mentha oil arrival reported around 550-600 drums in different spot markets.