Menthaoil February contract gained Rs 2.5 and settled at Rs 1290.8 on the back of domestic as well as exports demand amid reports of lower output this season. The sentiment improved further as traders engaged in creating positions on account of good demand from consuming industries and lower arrivals from Chandausi in Uttar Pradesh. Besides, adequate stocks position in the physical market following higher arrivals from Chandausi in Uttar Pradesh also put pressure on mentha oil. Reports indicate traders are waiting for more corrections before initiating fresh demand in the mandis. In Rampur, mentha oil (68 GLC) quoted at Rs 1,450 per kg, in Chandausi Rs 1,475 per kg, in Sambhal at Rs 1,475 a kg, in Barabanki at Rs 1,420 a kg. On 30th January, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 80,177 kg of which 78, 017 kg was physical stock and demat stock was 2,160 kg. At Barabanki, the total stock was 10, 00, 902 kg of which, physical stock accounted for 8, 55, 038 and demat stock was 1, 45, 864 kg. The contract made intraday low of Rs 1283 a kg and high of Rs 1302 a kg with the volume of 2961 and total open interest for the same contact was at 4383.Now support for the menthol is seen at 1281.9 and below could see a test of 1272.9. Resistance is now likely to be seen at 1300.9, a move above could see prices testing 1310.9.

Trading Ideas:

Mentha oil trading range for the day is 1272.9-1310.9.

Menthaoil spot is at 1438/- Spot market is down by Rs.7/-.

Mentha oil gained slightly on the back of domestic as well as exports demand amid reports of lower output this season.

Adequate stocks position in the physical market following higher arrivals from Chandausi also pressured.

Reports indicate traders are waiting for more corrections before initiating fresh demand in the mandis.