Menthaoil July contract dropped Rs 33.5 and settled at Rs 1228.5driven by sluggish demand in the spot market. Adequate stocks availability in the physical market also put pressure on mentha oil futures. Fresh arrivals from the major producing regions weighed on prices.. Arrivals of the fresh crop have started in the main sowing regions and currently stand around 1200 drums. Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year. Total arrival reported around 1,000 drums. On 2nd July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 30,220 kg of which 18, 715 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 4, 17, 747 kg of which, physical stock accounted for 3, 97,734 and demat stock was 20, 513 kg. In Rampur, mentha oil (68 GLC) quoted at Rs 1,325 per kg, in Chandausi Rs 1,340 per kg, in Sambhal at Rs 1,340 a kg, in Barabanki at Rs 1,285-1,290 a kg. The contract made intraday low of Rs 1225.3 a kg and high of Rs 1260 a kg with the volume of 3612 and total open interest for the same contact was at 4021. Now support for the menthol is seen at 1215.9 and below could see a test of 1203.2. Resistance is now likely to be seen at 1250.6, a move above could see prices testing 1272.6.

Trading Ideas:

Mentha oil trading range for the day is 1203.2-1272.6.

Menthaoil spot is at 1325/-.Spot market is down by Rs. 15/-.

Mentha oil prices fell driven by sluggish demand in the spot market.

Adequate stocks availability in the physical market also put pressure on mentha oil proces.

On 2nd July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 30,220 kg