Mentha Oil June contract gained Rs 52.1 and settled at Rs 1370.1 due to short covering amid thin arrival reported in spot markets. The total production of mentha oil in the current year is estimated at 52000 tonnes against 38000 tonnes that were reported last year. This is mainly due to strong sowing acreage in the current year. In Rampur, mentha oil (68 GLC) quoted at Rs 1,440 per kg, in Chandausi Rs 1,460 per kg, in Sambhal at Rs 1,460 a kg, in Barabanki at Rs 1,400 a kg. As per the traders, farmers are in a mood to sell the yield at their prices, as they have sold the old stock at higher prices and now they are not in a hurry for the money. As per the downward trend in menthe farmers have slowed down the cutting. As per the expectation of the traders, last year mentha oil production was around 32,000 tons, which may be around 58,000-60,000 tons this year. The total arrivals stood at 850-900 drums. On 16th 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 1304 a kg and high of Rs 1370.7 a kg with the volume of 4175 and total open interest for the same contact was at 2000. Now support for the menthol is seen at 1325.8 and below could see a test of 1281.6. Resistance is now likely to be seen at 1392.5, a move above could see prices testing 1415.

Trading Ideas:

Mentha oil trading range for the day is 1281.6-1415.

Menthaoil spot is at 1480/-.Spot market is up by Rs. 40/-

Mentha oil ended higher due to short covering amid thin arrival reported in spot markets.

The total production of mentha oil in the current year is estimated at 52000 tonnes against 38000 tonnes

On 16th June total stock of mentha oil at MCX-monitored warehouses at Chandausi was 50,723 kg