Menthaoil gained Rs 6 and settled at Rs 1272.4 driven by pick-up in spot demand. Restricted arrivals from Chandausi in Uttar Pradesh also influenced the Mentha oil prices. Higher production estimates are keeping pressure on the market sentiments as demand is yet to pick up significantly in the mandis. According to 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. Arrivals of the fresh crop have started in the main sowing regions and currently stand around 1200 drums. Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year. The total arrivals of mentha oil stood steady at 950-1,000 drums. On 27th 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. The contract made intraday low of Rs 1250.3 a kg and high of Rs 1278.8 a kg with the volume of 3933 and total open interest for the same contact was at 3405. Now support for the menthol is seen at
1255.5 and below could see a test of 1238.7. Resistance is now likely to be seen at 1284, a move above could see prices testing 1295.7.
Mentha oil trading range for the day is 1238.7-1295.7.
Menthaoil spot is at 1370/-.Spot market is down by Rs. 5/-.
Mentha oil prices ended with gains driven by pick-up in spot demand.
Higher production estimates are keeping pressure on sentiments as demand is yet to pick up significantly in the mandis.
The total arrivals of mentha oil stood steady at 950-1,000 drums.