Mentha oil prices slip on muted demand

Mentha oil prices slipped in futures trade on Tuesday on muted demand at the spot market.

Speculators avoided fresh positions in mentha oil futures due to weak demand by consuming industries at the spot market against higher supplies from key producing regions.

On the daily chart, Mentha formed a ‘bearish’ candle. The commodity future may face strong resistance at Rs 1,340 level.


However, lower arrival of the commodity in the spot markets coupled with the strong demand during August could lead to minor lower level buying but overall fundamentals are weak as there is an expectation of higher plantation of mentha in major producing regions, said Romesh Tiwari, Head of Research, CapitalAim.

At 12.00 pm, mentha oil prices were trading at Rs 1,298.50 a kg, down by Rs 6.30 or 0.48 per cent.

"Mentha oil contract on MCX platform last week started to correct from resistance around Rs 1,340 levels on the daily chart. MACD on the daily chart has now converged downward and also, the RSI is showing sell signal which is now placed at 52 levels on the same chart," Tiwari said.