Menthaoil August contract gained Rs 14.8 and settled at Rs 1109.5 as reports of  a fall in production supported the prices. Fresh buying by speculators on pick-up in spot market demand against less arrival from Chandausi in Uttar Pradesh mainly led to rise in mentha oil prices. Sowing area across UP likely to touch 2.48 lakh ha. Production expected 77 lakh tonnes – as per UP Horticultural dept. 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.  Expected rise in export and domestic demand from pharmaceutical Industries are likely to provide support to prices in the medium term. The contract made intraday low of Rs 1089.5 a kg and high of Rs 1113.9 a kg with the volume of 4360 and total open interest for the same contact was at 4443.Now support for the menthol is seen at 1094.7 and below could see a test of 1079.9. Resistance is now likely to be seen at 1119.1, a move above could see prices testing 1128.7.

Trading Ideas:

Menthaoil trading range is 1079.9-1129.

Menthaoil spot is at 1205/-.Spot market is down by Rs 7/-.

Menthaoil gained as reports of  a fall in production supported the prices.

Lower arrivals and rising demand from the Pharmaceutical Industries have been there

Exports to China reportedly on the rise in comming days