Mentha oil settles higher on rising demand

Menthaoil June contract dropped Rs 8.2 and settled at Rs 890 due to lower arrivals, anticipating the rise in export and domestic demand from the Pharmaceutical Industries in the near term.On June 4th, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 25,550 kg of which 23,390 kg is physical stock and 2,160 is the demat stock.At Barabanki, the total stock was 1,12,277 kg of which, physical stock accounted for 51,844 and demat stock was 60,433 kg.The contract made intraday low of Rs 876 a kg and high of Rs 891.9 a kg with the volume of 1468 and total open interest for the same contact was at 1475.Now support for the menthol is seen at 880 and below could see a test of 870.1. Resistance is now likely to be seen at 895.9, a move above could see prices testing 901.9.