Menthaoil May contract dropped Rs 11.4 and settled at Rs 951.5 on the back of reports of higher production of the crop this year. The overall stock position of mentha oil in major mandies are currently hovering in the range of 2500-3000 drums as against 8000-9000 drums of the last year. However, fresh arrivals of around 4-5 drums were reported. The contract made intraday low of Rs 938 a kg and high of Rs 995 a kg with the volume of 1261 and total open interest for the same contact was at 279.Now support for the menthol is seen at 928 and below could see a test of 904.5. Resistance is now likely to be seen at 985, a move above could see prices testing 1018.5.

Trading Ideas:

Menthaoil trading range is 904.5-1019.

Menthaoil spot is at 1035/-.Spot market is down by Rs.10/-.

Menthaoil dropped on the back of reports of higher production of the crop this year

Menthaoil looks to take support at 928 and resistance at 985.

Fresh arrivals of around 4-5 drums were reported.