Menthaoil February contract gained Rs 60.4 and settled at Rs 1569.7 after pick-up in demand from pharmaceutical units in the spot market.
Less arrivals from major producing area of Chandausi in Uttar Pradesh further supported the uptrend in mentha oil futures prices. Arrival in different spot markets reported around 400-425 drums.
The trend is likely to remain volatile in the short term as the higher levels too have not been sustainable. But medium term sentiments look positive on an expected pick up in demand in coming weeks.
On 7th February total stock of mentha oil at MCX-monitored warehouses at Chandausi was 2, 62, 239 kg of which 2, 52, 890 kg was physical stock and demat stock was 9,349 kg.
At Barabanki, the total stock was 8, 31, 838 kg of which, physical stock accounted for 6, 90, 345 and demat stock was 1, 41,493 kg.
The contract made intraday low of Rs 1510 a kg and high of Rs 1569.7 a kg with the volume of 6810 and total open interest for the same contact was at 3921.Now support for the Menthol is seen at 1529.9 and below could see a test of 1490.1.
Resistance is now likely to be seen at 1589.6, a move above could see prices testing 1609.5.
Trading Ideas:
Mentha oil trading range for the day is 1490.1-1609.5.
Menthaoil spot is at 1690/-.Spot market is up by Rs.38/-.
Mentha oil prices shot up after pick-up in demand from pharmaceutical units in the spot market
Arrival in different spot markets reported around 400-425 drums.
On 7th February total stock of mentha oil at MCX warehouses at Barabanki was 8, 31, 838 kg
Courtesy: Kedia Commodities
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