Menthaoil August contract dropped Rs 9.4 and settled at Rs 1316.7 as heavy rains in many regions of UP are hampering trade activity. Poor demand from the bulk buyers along with weak export demand weighed on prices. Earlier traders estimated the total production in the range of 50000-51000 tonnes, which is likely to be reduced to 44000 tonnes by traders and cultivators for the current year. The total arrivals of mentha oil stood at 400-450 drums. In Rampur, mentha oil (68 GLC) quoted at Rs 1,480 per kg, in Chandausi Rs 1,500 per kg, in Sambhal at Rs 1,500 a kg, in Barabanki at Rs 1,440 a kg. On 22nd August total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 31, 224 kg of which 1, 14, 686 kg was physical stock and demat stock was 16, 538 kg. At Barabanki, the total stock was 21, 70, 988 kg of which, physical stock accounted for 17, 44,309 and demat stock was 4, 26, 678 kg. Market sources mentioned that poor oil recovery from mentha oil in major producing regions such as Rampur and Sambhal district of Uttar Pradesh due to poor rainfall in the current year might reduce the overall recovery of mentha oil in the current season. The contract made intraday low of Rs 1311.1 a kg and high of Rs 1332.9 a kg with the volume of 4256 and total open interest for the same contact was at 4081. Now support for the menthol is seen at 1307.6 and below could see a test of 1298.4. Resistance is now likely to be seen at 1329.4, a move above could see prices testing 1342.

Trading Ideas:

Mentha oil trading range for the day is 1298.4-1342.

Menthaoil spot is at 1497/-.Spot market remains flat.

Mentha oil ended weak as heavy rains in many regions of UP are hampering trade activity

Poor demand from the bulk buyers along with weak export demand weighed on prices.

The total arrivals of mentha oil stood at 400-450 drums.