Menthaoil August contract dropped Rs 2 and settled at Rs 1126.1 due to sluggish spot market demand. A rise in demand expected in coming weeks along with a fall in arrivals are likely to keep sentiments moderately firm for the commodity in the medium term though short term trend is likely to remain volatile. Rains in growing areas could have short term Bullish impact on the price movement for Mentha as traders are not ruling out a fall in production from the higher figures projected some time back. On August 22th August total stock of mentha oil at MCX-monitored warehouses at Chandausi was 85,593 kg of which 85,593 kg was physical stock and the demat stock was zero. At Barabanki, the total stock was 8,21,393 kg of which, physical stock accounted for 8,21,393 and demat stock again was nil. The contract made intraday low of Rs 1122.2 a kg and high of Rs 1132.8 a kg with the volume of 1295 and total open interest for the same contact was at 2956.Now support for the menthol is seen at 1121.3 and below could see a test of 1116.4. Resistance is now likely to be seen at 1131.9, a move above could see prices testing 1137.6.

Trading Ideas:

Menthaoil trading range is 1116.4-1138.

Menthaoil spot is at 1244/-.Spot market is up by Rs 2/-.

Menthaoil dropped due to sluggish spot market demand.

Menthaoil looks to take support at 1121.30 and resistance at 1131.90.

On August 22th August total stock of mentha oil at MCX-monitored warehouses at Chandausi was 85,593