Menthaoil April contract gained Rs 20.4 and settled at Rs 1018.8 driven by a rise in demand in the spot market. Besides, tight stocks position in the physical market due to restricted arrivals from producing belts also supported the upside. In Rampur, mentha oil (68 GLC) quoted at Rs 1,075 per kg, in Chandausi Rs 1,085 per kg, in Sambhal at Rs 1,090 a kg, in Barabanki at Rs 1,060 a kg. On 20th April, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 27, 627 kg of which 1, 27, 627 kg was physical stock and demat stock was nil. At Barabanki, the total stock was 4,88, 951 kg of which, physical stock accounted for 4, 88, 951. The total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year, up almost 10-12% from the last year. This is mainly due to the better price realization and favourable crop conditions. Moreover, the total opening stocks of Mentha oil are expected to reach 13000-15000 tonnes in the next year. This may also convene the sufficient supplies of mentha oil next year. On the demand side, Mentha oil consumption might incite significant decline in the current year due to ban imposed by various state governments on gutka sale along with the sluggish export demand of mint products in the coming months. The contract made intraday low of Rs 996.2 a kg and high of Rs 1021.9 a kg with the volume of 3355 and total open interest for the same contact was at 1357. Now support for the menthol is seen at 1002.7 and below could see a test of 986.6. Resistance is now likely to be seen at 1028.4, a move above could see prices testing 1038.

Trading Ideas:

Mentha oil trading range for the day is 986.6-1038.

Menthaoil spot is at 1092/-. Spot market is up by Rs. 2/-

Mentha oil ended with gains driven by a rise in demand in the spot market.

Tight stocks position in the physical market due to restricted arrivals from producing belts also supported.

The total mentha oil production is expected to be in the range of 52000-55000 tonnes in the current year.