Menthaoil October contract gained Rs 33.4 and settled at Rs 1344 on strong demand and lower arrivals. Selling pressure however rose at the higher levels as traders waited for dips before initiating fresh demand in the mandis. Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates. The coming winter season demand is likely to remain firm. Some export queries from China and European countries reportedly supporting the market rates. Reports of a fall in production had been keeping the sentiments firm. Lower arrivals and rising export demand and domestic demand from the Pharmaceutical Industries have been there. Total arrivals in the UP mandis slipped to 550-600 drums from were 800-900 drums. On August 24th September total stock of mentha oil at MCX-monitored warehouses at Chandausi was 70,149 kg of which 70,149 kg was physical stock and the demat stock was zero. At Barabanki, the total stock was 1,026,565 kg of which, physical stock accounted for 1,026,565 and demat stock again was nil. The contract made intraday low of Rs 1314.6 a kg and high of Rs 1349.8 a kg with the volume of 2788 and total open interest for the same contact was at 2921. Now support for the menthol is seen at 1322.5 and below could see a test of 1300.9. Resistance is now likely to be seen at 1357.7, a move above could see prices testing 1371.3.

Trading Ideas:

Menthaoil trading range is 1300.9-1371.

Mentha oil prices ended with gains on strong demand and lower arrivals

Total arrivals in the UP mandis slipped to 550-600 drums from were 800-900 drums.

On August 24th September total stock of mentha oil at MCX warehouses at Chandausi was 70,149 kg