Menthaoil March contract dropped Rs 69.2 and settled at Rs 2105 on the back of rising demand from the domestic markets amid lower production concerns. Expectations of higher sowing activities this year put pressure on the markets even as low stocks and lower arrivals were reported in the mandis. Rising export demand amidst lower stocks however are expected to support the prices in the medium term. Spot market activities also remained subdued which was also reflected at futures front. Due to prevailing uncertainty in prices investors are not carrying their positions which are keeping prices under pressure. According to trade sources, despite of rise in acreage and subsequently the mentha oil production in coming season prices might remain firm, as negligible stock might provoke traders to start buying as soon as fresh crop hit the market. Arrival stood at 150-160 drums. On 20th March total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 85, 590 kg of which 1, 55, 383 kg was physical stock and demat stock was 30, 206 kg. At Barabanki, the total stock was 10, 60, 042 kg of which, physical stock accounted for 8, 75, 358 and demat stock was 1, 84,683 kg. The contract made intraday low of Rs 2087.2 a kg and high of Rs 2231.4 a kg with the volume of 4597 and total open interest for the same contact was at 2095.Now support for the menthol is seen at 2051 and below could see a test of 1997. Resistance is now likely to be seen at 2195.2, a move above could see prices testing 2285.4.

Trading Ideas:

Mentha oil trading range for the day is 1997-2285.4.

Menthaoil spot is at 2310/-.Spot market is down by Rs.90/-.

Mentha oil ended higher on the back of rising demand from domestic markets amid lower production concerns

The total arrival of mentha oil stood at 150-160 drums.

On 20th March total stock of mentha oil at MCX warehouses at Chandausi was 1, 85, 590 kg