Menthol Oil yesterday traded with the positive node and settled 1.75% up at 1297.90 bounce from the day's low on short covering ahead of June expiry. But pressure can be seen once again as with south-west monsoon making a slow advancement into the interior parts, it would be crucial to monitor its progress towards the northern parts in the coming days. Fresh arrivals from the major producing regions also kept the futures prices in negative zone. Expectations of higher production estimates in the current year also influenced mentha oil prices. The fall in mentha oil prices at futures trade was mostly due to profit-booking by speculators amid a weak trend at spot markets on subdued demand from the pharmaceutical industries. Fresh arrivals of around 1100-1200 drums were reported in the major mandies of Sambhal and Barabanki of UP. As per the expectation of the traders, last year mentha oil production was around 32,000 tons, which may be around 58k-60k tons this year. On 21st June total stock of mentha oil at MCX-monitored warehouses at Chandausi was 30,220 kg of which 18, 715 kg was physical stock and demat stock was 11, 505 kg. In yesterday's trading session menthol oil has touched the low of 1232.1 after opening at 1272.6, and finally settled at 1297.9. For today's session market is looking to take support at 1254, a break below could see a test of 1210.2 and whereas resistance is now likely to be seen at 1319.8, a move above could see prices testing 1341.8.

MENTHA OIL

Mentha oil trading range for the day is 1204.7-1336.3.

Menthaoil spot is at 1375/-.Spot market is down by Rs. 3/-.

Menthol settled 1.75% up on short covering ahead of June expiry.

The overall mentha acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh hectare this year

"Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% in the same period last year."

SELL MENTHA OIL JULY BELOW 1270 SL 1285 TGT 1256-1238. MCX