Mentha oil futures rally over 2% on spot demand

Mentha oil spurted over 2 per cent on Thursday, propped up by strong demand from consuming industries in the spot market.

MCX Mentha Oil futures firmed up Rs 35.40 to Rs 1,546 per kg at around 10.50 am.

According to Motilal Oswal, spot markets are also witnessing strong consumption demand amid restricted supplies. Bumper crop harvest has been discounted in the market, which is moving upwards on rising demand from end users.


Despite the peak season of harvest in June, prices of mentha oil have risen over 20 per cent since the beginning of the month as farmers held back stocks.

Preliminary estimates showed that acreage under mentha crop will grow this year as the farmers are encouraged by higher price in the recent past.

All the major markets, trade sources said, are likely to witness a higher inflow of the produce. There are chances of crop damage due to unfavourable weather conditions, Motilal Oswal said in a report.

According to Angel Commodities, Mentha Oil may trade sideways with immediate resistance at Rs 1,540 and thereafter at Rs 1,570. However, it can find immediate resistance at Rs 1,450 and thereafter at Rs 1,480.