Menthaoil December contract gained Rs 9.8 and settled at Rs 1417 owing to good demand from consuming industries and lower arrivals from Chandausi in Uttar Pradesh. Sentiment improved further largely on the back of increased domestic as well as exports demand in the midst of reports of lower output this season. Winter season demand is likely to support the rates at the lower levels as arrivals remain moderate in the mandis. Arrival stood at 500-525 drums in different spot markets. In Rampur, mentha oil (68 GLC) quoted at Rs 1,595 per kg, in Chandausi Rs 1,610 per kg, in Sambhal at Rs 1,610 a kg, in Barabanki at Rs 1,570 a kg. On 24th December, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 76,927 kg of which 73, 329 kg was physical stock and demat stock was 3,598 kg. At Barabanki, the total stock was 11, 55, 707 kg of which, physical stock accounted for 10, 58, 865 and demat stock was 96, 842 kg. The contract made intraday low of Rs 1401 a kg and high of Rs 1425 a kg with the volume of 6560 and total open interest for the same contact was at 4153.Now support for the menthol is seen at 1403.7 and below could see a test of 1390.3. Resistance is now likely to be seen at 1427.7, a move above could see prices testing 1438.3.

Trading Ideas:

Mentha oil trading range for the day is 1390.3-1438.3.

Menthaoil spot is at 1602/- Spot market is up by Rs.2/-.

Mentha oil gains owing to good demand from consuming industries and lower arrivals from Chandausi in Uttar Pradesh

Sentiment improved further largely on the back of increased domestic as well as exports demand

Winter season demand is likely to support the rates at the lower levels as arrivals remain moderate in the mandis.