Menthaoil September contract gained Rs 29.3 and settled at Rs 1248 as demand rose in the mandis from the pharmaceutical sector and reports of some export queries also supported the rates at the lower levels. Traders expect medium term trend to remain up as demand is expected to rise further in the coming weeks. Moderate demand has been noted in the mandis with traders expecting the demand from pharmaceutical Industries to rise further in coming days. A rise in demand expected in coming weeks along with a fall in arrivals are likely to keep sentiments moderately firm for the commodity in the medium term though short term trend is likely to remain volatile. The total arrivals of mentha oil surged to 600 from stood at 450 drums (125 drums for Sambhal mandi). On August 3rdh September total stock of mentha oil at MCX-monitored warehouses at Chandausi was 51,795 kg of which 51,795 kg was physical stock and the demat stock was zero. At Barabanki, the total stock was 9,44,123 kg of which, physical stock accounted for 9,44,123 and demat stock again was nil.  The contract made intraday low of Rs 1222.1 a kg and high of Rs 1252 a kg with the volume of 6018 and total open interest for the same contact was at 4951.Now support for the menthol is seen at 1229.4 and below could see a test of 1210.8. Resistance is now likely to be seen at 1259.3, a move above could see prices testing 1270.6.

Trading Ideas:

Menthaoil trading range is 1210.8-1271.

Menthaoil spot is at 1342/-.Spot market is up by Rs.14/-.

Menthaoil gained as demand rose in the mandis from the pharmaceutical sector

The total arrivals of mentha oil surged to 600 from stood at 450 drums (125 drums for Sambhal mandi).

On August 3rdh September total stock of mentha oil at MCX warehouses at Chandausi was 51,795 kg