Menthaoil July contract gained Rs 6.6 and settled at Rs 1314.7 on decreased arrival and exporters buying. Sentiment improved further as tight supplies in the spot markets due to less arrivals from growing belts of Chandausi in Uttar Pradesh. The total arrivals of mentha oil stood at 600-700 drums. According to spot market sources, the overall acreage is estimated to increase from 1.75 lakh ha to 2.1 lakh ha this year. The overall production of Mentha is expected to increase by 30% - 40% as compared to last year. Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year.  In Uttar Pradesh, the largest producer of Mentha Oil in India, the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha. In Rampur, mentha oil (68 GLC) quoted at Rs 1,345 per kg, in Chandausi Rs 1,400 per kg, in Sambhal at Rs 1,400 a kg, in Barabanki at Rs 1,350 a kg. On 12th July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 94,925 kg of which 83, 420 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 5, 85, 099 kg of which, physical stock accounted for 4, 80,312 and demat stock was 1, 04, 787 kg. The contract made intraday low of Rs 1291.2 a kg and high of Rs 1344.3 a kg with the volume of 7296 and total open interest for the same contact was at 3847.Now support for the menthol is seen at 1289.2 and below could see a test of 1263.6. Resistance is now likely to be seen at 1342.3, a move above could see prices testing 1369.8.

Trading Ideas:

Mentha oil trading range for the day is 1263.6-1369.8.

Menthaoil spot is at 1415/-.Spot market is up by Rs.5/-.

Mentha oil ended with gains on decreased arrival and exporters buying.

Sentiment improved further as tight supplies in the spot markets due to less arrivals

The total arrivals of mentha oil stood at 600-700 drums.