Menthaoil January contract dropped Rs 4 and settled at Rs 1402.5 on profit tracking weak spot demand after prices gained on winter season demand. This year, mentha oil production in the country would exceed 50,000 tons against 38,000 tons of last year. Recent fall in prices has caused a rise in demand. Winter season demand may keep mentha oil demand firm in coming days. Reports of ban on Gutka in Orissa had pressurized the market sentiments to some extent. Arrival decreased on extreme cold and stood at 250 drums in different spot markets and trading activities seen dull in the market. In Rampur, mentha oil (68 GLC) quoted at Rs 1,572 per kg, in Chandausi Rs 1,575 per kg, in Sambhal at Rs 1,575 a kg, in Barabanki at Rs 1,525 a kg. On 10th 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 1397.6 a kg and high of Rs 1410.6 a kg with the volume of 2884 and total open interest for the same contact was at 4154. Now support for the menthol is seen at 1396.5 and below could see a test of 1390.6. Resistance is now likely to be seen at 1409.5, a move above could see prices testing 1416.6.

Trading Ideas:

Mentha oil trading range for the day is 1390.6-1416.6.

Menthaoil spot is at 1575/- Spot market is down by Rs. 15/-.

Mentha oil ended with losses on profit tracking weak spot demand after prices gained on winter season demand

This year, mentha oil production in the country would exceed 50,000 tons against 38,000 tons of last year.

Reports of ban on Gutka in Orissa had pressurized the market sentiments to some extent.