Mentha oil futures decline on weak spot demand

Mentha oil prices continued to decline in futures trade on Thursday on weak demand in the spot market. Speculators are avoiding fresh positions in mentha oil in spot market on higher arrivals of the commodity from major producing regions.

On the daily chart, mentha has formed a ‘bearish’ candle while mentha oil August futures are consolidating in the Rs 1,290-1,315 range.

“The commodity is in a bearish trend since August 20, 2019 due to selling pressure fueled by weak fundamentals. There could be a rise in production of the commodity on expectation of higher plantation in major producing regions and, thus, higher expected supplies,” said Romesh Tiwari, Head of Research, Capital Aim.


Tiwari expects mentha prices to move upward from Rs 1250 level, as it has not broken the support at this level on the daily chart

“The RSI on the daily chart is still looking weak and it is placed at 43.80 level. In the coming days, there could be a range-bound movement in mentha oil September futures. Mentha oil Sept futures have an important resistance at Rs 1,320 and Rs 13,47 levels and important supports at Rs 1,250 and Rs 1,225 levels,” the expert said.