Menthaoil October contract gained Rs 11.9 and settled at Rs 1142.7 on some short covering after prices dropped on recent ban in Gutka on some states along with poor spot demand. The total arrivals stood steady at 500 drums. In Rampur, mentha oil (68 GLC) quoted at Rs 1,300 per kg, in Chandausi Rs 1,310 per kg, in Sambhal at Rs 1,310 a kg, in Barabanki at Rs 1,265 a kg. On 1st October, 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, 131, 207 kg of which, physical stock accounted for 1, 741,619 and demat stock was 3, 89, 587 kg. 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. The contract made intraday low of Rs 1111 a kg and high of Rs 1148.5 a kg with the volume of 7074 and total open interest for the same contact was at 4785. Now support for the menthol is seen at 1119.6 and below could see a test of 1096.6. Resistance is now likely to be seen at 1157.1, a move above could see prices testing 1171.6.

Trading Ideas:

Mentha oil trading range for the day is 1096.6-1171.6.

Menthaoil spot is at 1345/-.Spot market is up by Rs. 50/-.

Mentha oil gains on some short covering after prices dropped on recent ban in Gutka on some states

Production this year likely to exceed 50000 tonnes as per sources vs 38000 tonnes last year.

On 1st October, total stock of mentha oil at MCX warehouses at Chandausi was 1, 13, 250 kg