Menthaoil July contract gained Rs 8.9 and settled at Rs 1208 on rising demand from the domestic markets though peak arrivals from the producing regions could limit the uptrend. Prospects of rains in UP could however affect the arrivals which could support the market sentiments to some extent. 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. Mentha oil production is expected to be about 52,000 tonnes against 38,000 tonnes reported last year. In Rampur, mentha oil (68 GLC) quoted at Rs 1,305 per kg, in Chandausi Rs 1,320 per kg, in Sambhal at Rs 1,320 a kg, in Barabanki at Rs 1,250 a kg. On 7th July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 94,925 kg of which 83, 420 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 5, 85, 099 kg of which, physical stock accounted for 5, 64,585 and demat stock was 20, 513 kg. The contract made intraday low of Rs 1206.2 a kg and high of Rs 1230 a kg with the volume of 4270 and total open interest for the same contact was at 4429. Now support for the menthol is seen at 1199.5 and below could see a test of 1190.9. Resistance is now likely to be seen at 1223.3, a move above could see prices testing 1238.5.

Trading Ideas:

Mentha oil trading range for the day is 1190.9-1238.5.

Menthaoil spot is at 1315/-.Spot market is up by Rs. 5/-.

Mentha oil ended with gains on rising demand from the domestic markets

Prospects of rains in UP could however affect the arrivals which support the market sentiments

On 7th July total stock of mentha oil at MCX-monitored warehouses at Chandausi was 94,925 kg