Menthaoil September contract dropped Rs 17.3 and settled at Rs 1228 as profit booking and low demand at higher levels kept the rates down. Good demand from the pharmaceutical sector and reports of some export queries is supporting the prices. Traders expect medium term trend to remain up as demand is expected to rise further in the coming weeks. But some intermittent profit booking at the higher levels too cannot be ruled out. Increased arrivals in the spot market from the producing belts in Uttar Pradesh also weighed on the prices. On August 5th September total stock of mentha oil at MCX-monitored warehouses at Chandausi was 51,795 kg of which 51,795 kg was physical stock and the demat stock was zero. At Barabanki, the total stock was 9,44,123 kg of which, physical stock accounted for 9,44,123 and demat stock again was nil.  The total arrivals of mentha oil was around 650 drums (125 drums for Sambhal mandi), up 50 drums from Monday. The contract made intraday low of Rs 1221.1 a kg and high of Rs 1248.5 a kg with the volume of 6030 and total open interest for the same contact was at 4209.Now support for the menthol is seen at 1216.6 and below could see a test of 1205.1. Resistance is now likely to be seen at 1244, a move above could see prices testing 1259.9.

Trading Ideas:

Menthaoil trading range is 1205.1-1260.

Menthaoil dropped as profit booking and low demand at higher levels kept the rates down

Increased arrivals in the spot market from the producing belts in Uttar Pradesh also weighed on the prices

The total arrivals of mentha oil was around 650 drums up 50 drums