Menthaoil March contract dropped Rs 94.9 and settled at Rs 2278 on profit booking by the traders though limited stocks and rising export demand limited the downtrend. Good demand from the International markets and the domestic pharmaceutical Industries was noted. Low production and lower stock levels too supported the market sentiments. Traders expect an overall Bullish trend to prevail in the markets as arrivals in the mandis remained moderately low. Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates. Medium term Fundamentals remained moderately firm for the commodity as good pharmaceutical Industry demand continued. Reports of a fall in production had been keeping the sentiments firm. The total arrivals of mentha oil stood at 200 drums. The contract made intraday low of Rs 2278 a kg and high of Rs 2307 a kg with the volume of 2439 and total open interest for the same contact was at 3590.Now support for the menthol is seen at 2268.3 and below could see a test of 2258.7. Resistance is now likely to be seen at 2297.3, a move above could see prices testing 2316.7.

Trading Ideas:

Menthaoil spot is at 2210/-.Spot market is down by Rs.140/-.

Mentha oil ended lower on profit booking though limited stocks and rising export demand limited the downtrend.

Low production and lower stock levels too supported the market sentiments

The total arrivals of mentha oil stood at 200 drums.