Mentha oil declines after a fall in spot demand

NEW DELHI: Mentha oil suffered losses in futures trade on Friday after a fall in demand by consuming industries at spot markets.

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

Around 12:05 am, MCX Mentha oil was at Rs 1,225 per kg, down by Rs 17, or 1.37 per cent.


Mentha oil (July) is now hovering near its previous swing low of Rs 1,220.

The fundamentals of the commodity have been indicating bearishness amid lower demand and ample supply. Market participants believe with minor bouncebacks, the trend may remain largely bearish.

Technical charts are also portraying a gloomy picture.

"A Doji is observed on the daily scale which implies indecisiveness among investors. Prices are below its short term moving averages and overall formation is lower top and lower bottom. A double top breaks down is also seen on a daily scale that makes Rs 1,280- 1,300 now an important resistance," said Mustafa Nadeem, CEO, Epic Research.