Menthaoil June contract gained Rs 38.5 and settled at Rs 1367 tracking firmness in spot market demand. Farmers are holding their stocks amid anticipation of record high prices again this year. Output this season was estimated to rise 42 per cent to 50,000 tonnes this year from 35,000 tonnes last year. Higher sowing activities due to the high rates obtained by farmers last year resulted in higher production this year. Arrivals of the new crop remained high as demand-both domestic and exports remained weak and are not expected to pick up soon. The total arrivals of mentha oil stood at 750-800 drums. On 5th June total stock of mentha oil at MCX-monitored warehouses at Chandausi was 50,723 kg of which 39, 218 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 2, 29, 690 kg of which, physical stock accounted for 2, 09,177 and demat stock was 20, 513 kg. The contract made intraday low of Rs 1305.3 a kg and high of Rs 1377.5 a kg with the volume of 6822 and total open interest for the same contact was at 1909. Now support for the menthol is seen at 1322.4 and below could see a test of 1277.7. Resistance is now likely to be seen at 1394.6, a move above could see prices testing 1422.1.

Trading Ideas:

Mentha oil trading range for the day is 1277.7-1422.1.

Menthaoil spot is at 1460/-.Spot market is down by Rs. 10/-.

Mentha oil ended with good gains tracking firmness in spot market demand

Farmers are holding their stocks amid anticipation of record high prices again this year.

The total arrivals of mentha oil stood at 750-800 drums.