Mentha oil prices decline on lower spot demand

NEW DELHI: Mentha oil prices fell in futures trade on Monday on lower demand by consuming industries at the spot market

Around 11:50 am, MCX Mentha oil was at Rs 1502 per kg, down by Rs 6, or 0.40 per cent.

Speculators trimmed positions in mentha futures, triggered by a fall in demand from consuming industries at the spot market and adequate stocks on higher supplies from the major producing regions.


Experts say the improvement in demand for mentha oil is shadowed by strong supply at a time when an increase in production is expected in key areas of UP.

Mentha oil is expected to trade in the price range of Rs 1,525 to 1,470 for some time.

"Mentha continues to trade in consolidation and we expect the price range of Rs 1,525 to 1,470 to remain for a while," said Mustafa Nadeem, CEO, Epic Research.

"In the short-term, any upside will be capped by traders. Traders should wait for prices to breach Rs 1,470 on closing basis for it to slip to Rs 1,410-1,400," Nadeem added.