Menthaoil January contract dropped Rs 21.5 and settled at Rs 1381 as higher levels could not be sustained due to profit booking amid weak spot demand. Traders are reportedly waiting for corrections before initiating fresh demand in the mandis. Reports of ban on Gutka in Orissa had pressurized the market sentiments to some extent. Arrival stood at 200-225 drums in different spot markets. In Rampur, mentha oil (68 GLC) quoted at Rs 1,565 per kg, in Chandausi Rs 1,580 per kg, in Sambhal at Rs 1,580 a kg, in Barabanki at Rs 1,535 a kg. On 12th January, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 92,044 kg of which 88, 445 kg was physical stock and demat stock was 3,598 kg. At Barabanki, the total stock was 11, 70, 902 kg of which, physical stock accounted for 10, 75, 140 and demat stock was 95, 761 kg. The contract made intraday low of Rs 1380.6 a kg and high of Rs 1399 a kg with the volume of 5565 and total open interest for the same contact was at 4170.Now support for the menthol is seen at 1374.7 and below could see a test of 1368.5. Resistance is now likely to be seen at 1393.1, a move above could see prices testing 1405.3.

Trading Ideas:

Mentha oil trading range for the day is 1368.5-1405.3.

Menthaoil spot is at 1550/- Spot market is down by Rs.25/-.

Mentha oil ended lower as higher levels could not be sustained due to profit booking amid weak spot demand

Traders are reportedly waiting for corrections before initiating fresh demand in the mandis.

Total stock of mentha oil at MCX-monitored warehouses at Chandausi was 92,044 kg