Menthaoil July contract gained Rs 33 and settled at Rs 1324.3 on short covering amid on rising demand from pharmaceutical units. Tight stocks position following restricted arrivals from Chandausi in Uttar Pradesh also supported the uptrend in mentha oil prices at futures market. Reports of ban on Pan masala pressurized the market sentiments. Trend likely to remain volatile in the short term as prospects of rains in UP could affect the arrivals which could support the market sentiments to some extent. Better production prospects have been pressurizing the market sentiments. Demand is unlikely to rise much in the short term as traders wait for further dips before making queries in the mandis. The total arrivals of mentha oil stood at 600-650 drums. In Rampur, mentha oil (68 GLC) quoted at Rs 1,425 per kg, in Chandausi Rs 1,435 per kg, in Sambhal at Rs 1,435 a kg, in Barabanki at Rs 1,390 a kg. On 19th July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 93,845 kg of which 82, 340 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 8, 64, 812 kg of which, physical stock accounted for 7, 34,120 and demat stock was 1, 30, 692 kg. The contract made intraday low of Rs 1265.4 a kg and high of Rs 1329.9 a kg with the volume of 6057 and total open interest for the same contact was at 3165.Now support for the menthol is seen at 1283.2 and below could see a test of 1242. Resistance is now likely to be seen at 1347.7, a move above could see prices testing 1371.

Trading Ideas:

Mentha oil trading range for the day is 1242-1371.

Menthaoil spot is at 1455/-.Spot market is down by Rs.45/-.

Mentha oil rose on rising demand from pharmaceutical units.

Reports of ban on Pan masala pressurized the market sentiments.

The total arrivals of mentha oil stood at 600-650 drums.