Menthaoil January contract dropped Rs 22.2 and settled at Rs 1293.7 due to weak demand in the spot market. Reports indicate traders are waiting for more corrections before initiating fresh demand in the mandis. Now, trend would rely on the export as well as domestic demand as winter-season is approaching to end in few weeks. Arrival stood at 150 drums in different spot markets. In Rampur, mentha oil (68 GLC) quoted at Rs 1,503 per kg, in Chandausi Rs 1,520 per kg, in Sambhal at Rs 1,520 a kg, in Barabanki at Rs 1,470 a kg. On 22nd January, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 83,411 kg of which 81, 251 kg was physical stock and demat stock was 2,160 kg. At Barabanki, the total stock was 10, 70, 902 kg of which, physical stock accounted for 10, 87, 013 and demat stock was 83, 889 kg. The contract made intraday low of Rs 1293.2 a kg and high of Rs 1323.9 a kg with the volume of 6494 and total open interest for the same contact was at 3479.Now support for the menthol is seen at 1283.3 and below could see a test of 1272.9. Resistance is now likely to be seen at 1314, a move above could see prices testing 1334.3.

Trading Ideas:

Mentha oil trading range for the day is 1272.9-1334.3.

Menthaoil spot is at 1490/- Spot market is down by Rs.25/-.

Mentha oil ended with gains on short covering as improved demand has emerged on corrections.

Reports indicate traders are waiting for more corrections before initiating fresh demand in the mandis.

Total stock of mentha oil at MCX warehouses at Chandausi was 83,411 kg of which 81, 251 kg was physical stock.