Mentha oil futures to magnitude new pinnacle in the coming days fueled by receding stocks in major mandies accompanied with follows up buying by traders and speculators. The MCX September contract staged incessant gains in early trades, but renewed wave of profit booking at higher levels sent the prices near to their opening rates. The prices of MCX September benchmark were trading at Rs 818 per kg , up Rs 4.80after hitting the intraday high of Rs 819 per kg today.
As per market sources, the total daily arrivals of mentha oil to be ranging between 400-450 drums (1 drum = 180 kgs ) against 500-560 drums reported earlier at the major mandies of Uttar Pradesh such as Sambhal , Chnadausi and Rampur. This has propelled the buoyancy in spot market. The spot prices of mentha oil have touched new season high of Rs 890-900 per kg at Chandausi mandi. Moreover, rumours of strong export demand in international market have echoed the stockiest buying and also restricted the selling of farmers at major mandies.
Taking the positive cues from spot market, the futures prices have also tested their new highs in today's trading in the face of follow up buying by speculators. Technically, September future contract has not violated the 819-820 levels confidently and witnessing some profit booking from these levels. Therefore, traders can only be initiated the fresh longs, once prices protract above these levels while at the downside, some support is likely at around 807-808 levels.