Menthaoil January contract dropped Rs 10.3 and settled at Rs 1449.5 due to profit booking after prices rose on strong buying support and steady to weak arrivals in the local markets in last some sessions. Meanwhile, pharmaceutical demand is being prevailed in mentha oil. Arrival in different spot markets reported around 350-375 drums. The tight stocks position in the physical market due to lower arrivals from producing regions in Uttar Pradesh also influenced mentha oil prices. Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates.

On 10th January total stock of mentha oil at MCX-monitored warehouses at Chandausi was 38, 117 kg of which 38,117 kg was physical stock and the demat stock was nil. At Barabanki, the total stock was 8, 01,633 kg of which, physical stock accounted for 6, 77, 409 and demat stock was 1, 24,223 kg. The contract made intraday low of Rs 1445.4 a kg and high of Rs 1469.9 a kg with the volume of 6800 and total open interest for the same contact was at
4214. Now support for the menthol is seen at 1440 and below could see a test of 1430.4. Resistance is now likely to be seen at 1464.5, a move above could see prices testing 1479.4.

Trading Ideas:

Menthaoil trading range is 1430.4-1479.

Menthaoil spot is at 1515/-.Spot market is down by Rs. 25/-.

Menthaoil dropped due to profit booking after prices rose on strong buying support in last some sessions

The tight stocks position in physical market due to lower arrivals from producing regions

On 10th January total stock of mentha oil at MCX-monitored warehouses at Chandausi was 38, 117 kg