Mentha oil futures surge on strong spot demand

NEW DELHI: Mentha oil witnessed strong gains in futures trade on Monday, buoyed by strong demand by consuming industries at spot markets.

Raising of bets by speculators, driven by surging demand from consuming industries at the spot market against limited supplies from key producing regions, drove mentha oil prices higher in futures trade.

Around 11:25 am, MCX Mentha oil was at Rs 1,425 per kg, up by Rs 27.60, or 1.98 per cent.


Mentha Oil (May) extends the uptrend on the back of a long build up and of buying at lower levels. Despite the sentiments of higher production, we are seeing the revival in demand at lower levels while the demand at the spot market in key areas of UP is also improving," said Mustafa Nadeem, CEO, Epic Research.

Since prices have taken out a recent swing high placed at Rs 1,420-1,425, we believe the trend may now extend further. Technically, this extension of the prices from the previous rally will take mentha to higher levels of Rs 1,470-1,480 in coming days while Rs 1,380 now becomes the point of inflection, he added.