Menthaoil July contract dropped Rs 30.3 and settled at Rs 1107.3 due to profit booking at the higher levels. However, reports of a fall in production are providing support to the sentiments. Rains in growing areas in UP too had been having a Bullish impact on the market sentiments as it affected the Oil extraction process adversely. However effect of rains may not be significant now but indications that production prospects may be lower than the previous estimates could perk up prices further. On July 21st, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 91,397 kg of which 91,397 kg is physical stock and the demat stock stood at zero. At Barabanki, the total stock was 4,48,727 kg of which, physical stock accounted for 4,48,727 and demat stock again was nil. The contract made intraday low of Rs 1103.5 a kg and high of Rs 1133 a kg with the volume of 2810 and total open interest for the same contact was at 3931.Now support for the menthol is seen at 1096.2 and below could see a test of 1085.1. Resistance is now likely to be seen at 1125.7, a move above could see prices testing 1144.1.

Trading Ideas:

Menthaoil trading range is 1085.1-1144.

Menthaoil spot is at 1218/-.Spot market is down by Rs 22/-.

Menthaoil dropped due to profit booking at the higher levels.

Menthaoil looks to take support at 1096.20 and resistance at 1125.70.

On July 21st, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 91,397 kg