Mentha oil edges up; pullback seen towards Rs 1,250-1,260

NEW DELHI: Mentha oil prices inched up in futures trade on Wednesday on an uptick in demand by consuming industries at spot markets.

Speculators raised positions in mentha oil futures as demand from consuming industries climbed amid limited supplies from key producing regions.

Around 11:35 am, MCX Mentha oil was at Rs 1,229 per kg, up by Rs 9.20, or 0.75 per cent.


Barring occasional gains, the commodity has been witnessing selling pressure due to muted spot demand while spot markets are seeing ample supply.

While fundamentals remain weak for the commodity, technical charts are indicating at a pullback towards Rs 1,250-1,260 levels.

"Mentha sustains Rs 1,200 levels as oversold prices seem to bounce back on the back of short-covering. The prices have been bearish for a while and now some sort of cool off is seen. This is due to technical indicators that are signaling oversold levels and divergence in the short-term. A pullback is seen towards Rs 1,250-1,260 while the trend largely remains bearish. We suggest remaining bearish on any short-term bounce," said Mustafa Nadeem, CEO, Epic Research.