Menthaoil September contract dropped Rs 7.3 and settled at Rs 1367.1 on profit booking tracking weakness in spot market demand. Reports of ban in Pan Masala in some states had been keeping pressure on the market rates over last few days. In Uttar Pradesh, the largest producer of Mentha Oil in India, the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha. 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. The total arrivals stood steady at 600-650 drums. In Rampur, mentha oil (68 GLC) quoted at Rs 1,545 per kg, in Chandausi Rs 1,550 per kg, in Sambhal at Rs 1,550 a kg, in Barabanki at Rs 1,500 a kg. On 7th September total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 13, 250 kg of which 96,712 kg was physical stock and demat stock was 16, 538 kg. At Barabanki, the total stock was 23, 69, 384 kg of which, physical stock accounted for 19, 36,222 and demat stock was 4, 33, 161 kg. The contract made intraday low of Rs 1364.3 a kg and high of Rs 1378 a kg with the volume of 2767 and total open interest for the same contact was at 6179.Now support for the menthol is seen at 1361.6 and below could see a test of 1356.1. Resistance is now likely to be seen at 1375.3, a move above could see prices testing 1383.5.

Trading Ideas:

Mentha oil trading range for the day is 1356.1-1383.5.

Menthaoil spot is at 1522/-.Spot market is down by Rs.16/-.

Menthaoil dropped on profit booking tracking weakness in spot market demand.

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The total arrivals of mentha oil stood steady at 600-650 drums.