Menthaoil March contract dropped Rs 15.6 and settled at Rs 1247 on reports of rise in the pace of sowing in key growing areas. Huge stocks, poor export demand are also weighing on the commodity. In Rampur, mentha oil (68 GLC) quoted at Rs 1,392 per kg, in Chandausi Rs 1,390 per kg, in Sambhal at Rs 1,395 a kg, in Barabanki at Rs 1,360 a kg. Total production of mentha oil stood around 45,000 tons and it is likely that carry forward stock may be around 3,000 tons. On 2nd March, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 15, 046 kg of which 1, 15, 046 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 9, 89, 875 kg of which, physical stock accounted for 9, 38, 387 and demat stock was 51, 487 kg. Mentha oil production in coming season is expected to increase by 23% to 65000 tons, according to the sources. Arrival stood at 325 drums in different spot markets. The contract made intraday low of Rs 1244.2 a kg and high of Rs 1268 a kg with the volume of 5561 and total open interest for the same contact was at 4101.Now support for the menthol is seen at 1238.1 and below could see a test of 1229.3. Resistance is now likely to be seen at 1261.9, a move above could see prices testing 1276.9.

Trading Ideas:

Mentha oil trading range for the day is 1229.3-1276.9.

Menthaoil spot is at 1395/- Spot market remains unchanged.

Mentha oil ended with losses on reports of rise in the pace of sowing in key growing areas.

Huge stocks, poor export demand are also weighing on the PRICES.

Mentha oil production in coming season is expected to increase by 23% to 65000 tons.