Mentha oil slips on muted spot demand amid ample supply

NEW DELHI: Mentha oil prices continued to slip in futures trade on Monday, as muted demand by consuming industries at spot markets weighed on investor sentiment.

Speculators raised bearish positions in mentha oil futures due to a fall in demand from consuming industries at the spot market against ample supplies from key producing regions.

Around 11 am, MCX Mentha oil traded at Rs 1,220.80 a kg, up Rs 3.10, or 0.25 per cent.


“Muted demand in the spot market amid ample supply in key markets of UP, and higher production estimates have taken a toll on prices. The fundamentals have been negative for the past few months, as a recent recovery in prices faded away quickly," said Mustafa Nadeem, CEO, Epic Research.

Technical charts portrayed an uninspiring picture.

"Mentha oil prices have breached an important support and are now at a very crucial multi-year support of Rs 1,200. There may be some minor bounce, but it will be short-lived. Any price rise to Rs 1,240-1,250 levels should be utilised to add shorts for lower targets of Rs 1,170,” Nadeem said.