Menthaoil December contract dropped Rs 23.6 and settled at Rs 1443 on profit booking tracking weak spot demand after prices gained as export queries rose at the lower levels. In the spot market, overall trading activities remained low but traders expect pick up in demand in the coming weeks. Sowing activities have significantly increased this year due to last year's higher spot market prices. In Uttar Pradesh, the largest producer of Mentha oil, the area under sowing is expected to rise to 2.10 lakh ha as against 1.75 lakh ha of last year. In Rampur, mentha oil (68 GLC) quoted at Rs 1,595 per kg, in Chandausi Rs 1,600 per kg, in Sambhal at Rs 1,605 a kg, in Barabanki at Rs 1,575 a kg. On 13th December, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 76,927 kg of which 73, 329 kg was physical stock and demat stock was 3,598 kg. At Barabanki, the total stock was 11, 55, 707 kg of which, physical stock accounted for 10, 15, 645 and demat stock was 1, 40, 062 kg. The contract made intraday low of Rs 1439.1 a kg and high of Rs 1478 a kg with the volume of 6358 and total open interest for the same contact was at 3897. Now support for the menthol is seen at 1428.7 and below could see a test of 1414.5. Resistance is now likely to be seen at 1467.6, a move above could see prices testing 1492.3.

Trading Ideas:

Mentha oil trading range for the day is 1414.5-1492.3.

Menthaoil spot is at 1610/- Spot market is down by Rs. 22/-.

Menthaoil dropped on profit booking tracking weak spot demand after prices gained as export queries rose at the lower levels.

Sowing activities have significantly increased this year due to last year's higher spot market prices.

Total stock was 11, 55, 707 kg of which, physical stock accounted for 10, 15, 645 and demat stock was 1, 40, 062 kg.