Menthaoil August contract dropped Rs -12.7 and settled at Rs 1066.9 due to sluggish demand from pharmaceutical units in the spot market. Adequate stocks position, following increased arrivals from the producing belts in Uttar Pradesh also put pressure on the mentha oil prices. Rains in growing areas could have short term Bullish impact on the price movement for Mentha as traders are not ruling out a fall in production from the higher figures projected some time back. On July 27th, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 11,5136 kg of which 11,5136 kg is physical stock and the demat stock stood at zero. At Barabanki, the total stock was 6,32,341 kg of which, physical stock accounted for 6,32,341 and demat stock again was nil.  The contract made intraday low of Rs 1060.7 a kg and high of Rs 1091.3 a kg with the volume of 2950 and total open interest for the same contact was at 4002.Now support for the menthol is seen at 1054.6 and below could see a test of 1042.4. Resistance is now likely to be seen at 1085.2, a move above could see prices testing 1103.6.

Trading Ideas:

Menthaoil trading range is 1042.4-1104.

Menthaoil spot is at 1178/-.Spot market is down by Rs 17/-.

Mentha oil prices dropped due to sluggish demand from pharmaceutical units in the spot market.

Menthaoil looks to take support at 1054.60 and resistance at 1085.20.

On July 27th, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 11,5136 kg