Menthaoil January contract dropped Rs 18.2 and settled at Rs 1394.1 tracking weak spot demand on reports of ban on Gutka in Orissa had pressurized the market sentiments. Adequate stocks position in the physical market following increased arrivals from Chandausi in Uttar Pradesh also fuelled the downtrend in mentha oil prices. Demand picked up at the lower levels after the recent fall in rates last week and that supported the prices. Traders however apprehend the fall to be temporary and winter season demand is likely to keep supporting the prices. Arrival stood at 250 drums in different spot markets on extreme cold. In Rampur, mentha oil (68 GLC) quoted at Rs 1,580 per kg, in Chandausi Rs 1,595 per kg, in Sambhal at Rs 1,590 a kg, in Barabanki at Rs 1,550 a kg. On 9th January, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 92,044 kg of which 88, 445 kg was physical stock and demat stock was 3,598 kg. At Barabanki, the total stock was 11, 70, 902 kg of which, physical stock accounted for 10, 75, 140 and demat stock was 95, 761 kg. The contract made intraday low of Rs 1381.3 a kg and high of Rs 1416.8 a kg with the volume of 7948 and total open interest for the same contact was at 4428. Now support for the menthol is seen at 1378 and below could see a test of 1361.9. Resistance is now likely to be seen at 1413.5, a move above could see prices testing 1432.9.

MENTHA OIL

Mentha oil trading range for the day is 1361.9-1432.9.

Menthaoil spot is at 1580/- Spot market is down by Rs. 5/-.

Mentha oil ended lower tracking weak spot demand on reports of ban on Gutka in Orissa had pressurized prices.

Adequate stocks position in physical market following increased arrivals from Chandousi in Uttar Pradesh also fuelled downtrend

Arrival stood at 250 drums in different spot markets on extreme cold.

MENTHA OIL LOOK TO TRADE IN THE RANGE. WILL WAIT FOR ENTRY