Menthaoil June contract gained Rs 36.6 and settled at Rs 1368 as improve demand and short covering kept the trend bullish. Stockists are reportedly holding back stocks in anticipation of further rise in price in coming weeks. Some more short term recovery can be noted but high arrivals of the new crop in the mandis could pressurize the market sentiments to some extent. The total sowing acreage of mentha crop in the state was about 1.90-2.05 lakh hectare of land, which was about 15,000 hectare more than the previous year. This was mainly due to remunerative prices of mentha oil throughout the marketing season (April to February 2011-12) along with weak stock position in the major mandies due to poor production in the last year. The total arrivals of mentha oil stood at 950-1000 drums. On 11th June total stock of mentha oil at MCX-monitored warehouses at Chandausi was 50,723 kg of which 39, 218 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 2, 29, 690 kg of which, physical stock accounted for 2, 09,177 and demat stock was 20, 513 kg. The contract made intraday low of Rs 1336.6 a kg and high of Rs 1371.2 a kg with the volume of 4360 and total open interest for the same contact was at 2101.Now support for the menthol is seen at 1346 and below could see a test of 1324. Resistance is now likely to be seen at 1380.6, a move above could see prices testing 1393.2.

Trading Ideas:

Mentha oil trading range for the day is 1324-1393.2.

Menthaoil spot is at 1485/-.Spot market is up by Rs.30/-.

Mentha oil ended higher as improve demand and short covering kept the trend bullish

Stockists are reportedly holding back stocks in anticipation of further rise in price in coming weeks.

The total arrivals of mentha oil stood at 950-1000 drums.