Menthaoil February contract dropped Rs 37.3 and settled at Rs 1555.7 due to absence of strong demand. Arrival has also increased on higher prices in spot market. Arrival in different spot markets reported around 450 drums. Rise in demand in the mandis on the domestic and the export front from European countries and China continued to support the rates. Medium term Fundamentals remained moderately firm for the commodity as good pharmaceutical Industry winter season demand and further rise in export demand are expected but short term trend likely to remain volatile. On 28th January total stock of mentha oil at MCX-monitored warehouses at Chandausi was 60,773 kg of which 51,424 kg was physical stock and demat stock was 9,349 kg. At Barabanki, the total stock was 7, 34,006 kg of which, physical stock accounted for 5, 92, 513 and demat stock was 1, 41,493 kg. The contract made intraday low of Rs 1552.1 a kg and high of Rs 1603 a kg with the volume of 7879 and total open interest for the same contact was at 3535.Now support for the menthol is seen at 1537.5 and below could see a test of 1519.4. Resistance is now likely to be seen at 1588.4, a move above could see prices testing 1621.2.

Trading Ideas:

Menthaoil trading range is 1519.4-1621.

Menthaoil spot is at 1615/-.Spot market is down by Rs.30/-.

Mentha oil prices dropped due to absence of strong demand.

Arrival has also increased on higher prices in spot market

On 28th January total stock of mentha oil at MCX warehouses at Chandausi was 60,773 kg