Menthaoil September contract dropped Rs 49.6 and settled at Rs 1189.3 tracking weakness in spot demand. Adequate stocks position in the physical market following increased arrivals from Chandousi in Uttar Pradesh fuelled the downtrend in mentha oil prices. Traders estimated the total production of mentha oil in the current year at 37000 tonnes against 29000 tonnes that was reported last year. Strong production for the current year has incited strong supplies of mentha oil by cultivators at elevated levels. While the spot prices of mentha oil were trading around Rs 1480-1495 per kg in the major mandies of Uttar Pradesh. In Rampur, mentha oil (68 GLC) quoted at Rs 1,410 per kg, in Chandausi Rs 1,418 per kg, in Sambhal at Rs 1,420 a kg, in Barabanki at Rs 1,370 a kg. On 18th 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, 26,501 and demat stock was 4, 42, 883 kg. The contract made intraday low of Rs 1189.3 a kg and high of Rs 1223.9 a kg with the volume of 6226 and total open interest for the same contact was at 4116.Now support for the menthol is seen at 1177.8 and below could see a test of 1166.2. Resistance is now likely to be seen at 1212.4, a move above could see prices testing 1235.4.

Trading Ideas:

Mentha oil trading range for the day is 1166.2-1235.4.

Menthaoil spot is at 1392/-.Spot market is down by Rs.27/-.

Mentha oil ended with weak node tracking weakness in spot demand

Adequate stocks position in physical market following increased arrivals from Chandousi fuelled the downtrend

Strong production for the current year has incited strong supplies of mentha oil by cultivators at elevated levels