Menthol oil yesterday traded with the negative node and settled -1.06% down at 1267.80 in the line of expectation overall counter remains highly volatile due to June month expire. Last day we have seen Mentha Oil closed high on short covering at the lower levels ensured a moderate bounce back in rates. Demand remained low and moderate arrivals kept pressure on the market rates as the higher production estimates are keeping pressure on the market sentiments as demand is yet to pick up significantly in the mandis. Short term further corrections are likely as in the physical markets good arrivals are seen. However demand also reported by stockists. That may keep on giving support to the market time to time. Sentiments likely to remain slight weak till arrivals continue as no strong demand is expected soon. Higher sowing activities due to the high rates obtained by farmers last year resulted in higher production this year. In UP the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha Short term trend remains volatile till arrivals continue while exporters wait for further dips before initiating fresh demand in the mandis. Demand also remained weak from the domestic pharmaceutical Industries. 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. For today's session market is looking to take support at 1251.9, a break below could see a test of 1235.9 and whereas resistance is now likely to be seen at 1287.9, a move above could see prices testing 1307.9.
Mentha oil trading range for the day is 1235.9-1307.9.
Menthaoil spot is at 1375/-.Spot market is unchanged.
Menthol oil settled down as demand remained low and moderate arrivals kept pressure
In UP the area has been forecast to rise to 2.10 lakh ha short term trend remains volatile.
Higher stocks in the mandis from higher arrivals also kept pressure on the market sentiments.
SELL MENTHAOIL JULY BELOW 1270 SL 1285 TGT 1256-1238. MCX STBT
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