Menthaoil February contract dropped Rs 7.3 and settled at Rs 1377.4 on the heels of strong supply situation in domestic market against sluggish demand in domestic and international market. The total mentha oil production is expected to be in the range of 62000-65000 tonnes in the current year, up almost 10-12% from the last year. This is mainly due to better price realization and favourable crop conditions. Moreover, the total opening stocks of mentha oil is expected to reach 20000-22000 tonnes in the next year. This may also convene the sufficient supplies of mentha oil next year. Meanwhile, mentha crop planting has been started in some parts of UP. However, planting will gain pace after harvesting of wheat crop, which will take much time. On 13th February, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 80,177 kg of which 78, 017 kg was physical stock and demat stock was 2,160 kg. At Barabanki, the total stock was 8, 22, 839 kg of which, physical stock accounted for 6, 78,144 and demat stock was 1, 44, 425 kg. The contract made intraday low of Rs 1367.2 a kg and high of Rs 1401 a kg with the volume of 7377 and total open interest for the same contact was at 4128. Now support for the menthol is seen at 1362.7 and below could see a test of 1348.1. Resistance is now likely to be seen at 1396.5, a move above could see prices testing 1415.7.

Trading Ideas:

Mentha oil trading range for the day is 1348.1-1415.7.

Menthaoil spot is at 1480/- Spot market is down by Rs. 5/-.

Menthaoil dropped on the heels of strong supply situation in domestic market against sluggish demand

The total mentha oil production is expected to be in the range of 62000-65000 tonnes in the current year

The total opening stocks of mentha oil is expected to reach 20000-22000 tonnes in the next year.