Menthaoil May contract dropped Rs -53.7 and settled at Rs 1289.2 as higher arrivals of new crop along with higher production estimates brought down market sentiments. Expectations of higher sowing activities this year put pressure on the markets even as low stocks and lower arrivals were reported in the mandis. Rising export demand amidst lower stocks however are expected to support the prices in the medium term. The next crop is expected to arrive in June and till then arrivals are expected to remain weak in the mandis. Good demand from the International markets and the domestic pharmaceutical Industries was noted. Low production and lower stock levels too supported the market sentiments. Traders expect an overall Bullish trend to prevail in the markets as arrivals in the mandis remained moderately low. The total arrivals of mentha oil stood steady at 140-150 drums. On 22nd May total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 26, 219 kg of which 1, 14, 714 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 6, 18, 133 kg of which, physical stock accounted for 5, 75, 306 and demat stock was 42,827 kg. The contract made intraday low of Rs 1289.2 a kg and high of Rs 1341.8 a kg with the volume of 2239 and total open interest for the same contact was at 1082. Now support for the menthol is seen at 1271.7 and below could see a test of 1254.1. Resistance is now likely to be seen at 1324.3, a move above could see prices testing 1359.3.

Trading Ideas:

Mentha oil trading range for the day is 1254.1-1359.3.

Menthaoil spot is at 1475/-.Spot market is down by Rs. 15/-.

Mentha oil ended lower as higher arrivals of new crop along with higher production estimates weighed on sentiments

Expectations of higher sowing activities this year put pressure on the markets

The total arrivals of mentha oil stood steady at 140-150 drums.