Menthaoil February contract dropped Rs -23.7 and settled at Rs 1540.3 on profit booking after prices gained due to pick-up in demand from pharmaceutical units in the spot market.
Less arrivals from major producing area of Chandousi in Uttar Pradesh further supported the uptrend in mentha oil futures prices.
Trend in Dollar vs Re could also affect the short term market sentiments as weakening Dollar could affect the export rates adversely. But possibility of a rise in demand at the lower levels and low arrivals are expected to support the prices from a medium term point of view.
On 8th 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 1532.2 a kg and high of Rs 1584.1 a kg with the volume of 10051 and total open interest for the same contact was at 3865.
Now support for the Menthol is seen at 1520.3 and below could see a test of 1500.3. Resistance is now likely to be seen at 1572.2, a move above could see prices testing 1604.1.
Trading Ideas:
Mentha oil trading range for the day is 1500.3-1604.1.
Menthaoil spot is at 1660/-.Spot market is down by Rs.30/-.
Mentha oil prices ended down on profit booking after prices gained due to pick-up in demand
Elections in UP reportedly affected the trading prospects
On 8th February physical stock of mentha oil at MCX warehouses at Chandausi was 2, 52, 890kg
Courtesy: Kedia Commodities
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