Mentha oil prices surge on improved spot demand

Mentha oil prices climbed in futures trade on Wednesday, supported by a marginal rise in demand in the spot market.

"Mentha August futures are technically sustaining at the 20-day moving average on the back of buying at lower levels. In the spot market, there has seen a marginal improvement in demand, specifically in key spot markets in UP,” said Mustafa Nadeem, CEO of Epic Research.

Speculators raised bets on mentha futures, driven by surging demand from consuming industries in the spot market against limited supplies from key producing industries, which drove mentha oil prices higher.


Around 11:55 am, MCX Mentha Oil traded at Rs 1,315.40 a kg, up by Rs 8.20. On commodity exchanges, mentha looked strong and RSI on the daily chart was placed at 61.68 at around 11:00 am (IST) on Wednesday.

"We believe this rebound can sustain in the short term and prices can move higher to Rs 1,350-Rs 1,370 level in the coming days,” Nadeem said.