Mentha oil slips on muted spot demand; higher production estimates weigh on sentiment

Mentha oil prices slipped in futures trade on Thursday as muted demand by consuming industries at spot markets weighed on the commodity.

Speculators trimmed positions in mentha oil futures due to a fall in demand from consuming industries at the spot market against adequate supplies from key producing regions.

Around 11:15 am, MCX Mentha oil was at Rs 1,296.70 per kg, down by Rs 9.60, or 0.73 per cent.


Market participants said muted demand at the spot market amid ample supply and higher production estimates have hit the sentiment for mentha oil prices.

Technical charts are showing mentha oil prices failed to breach Rs 1,365 level.

"On the daily chart, the price has tested the resistance at Rs 1,365 and corrected from there with declining open interest. MACD has shown downward crossover on the daily chart and RSI is also looking weak that is now placed at 47.96 levels," said Romesh Tiwari, Head of Research, CapitalAim.

If mentha oil remains below the levels of Rs 1,290, one should sell on rise with a stop loss around Rs 1,310, Tiwari added.

The analyst said that mentha oil has immediate support at Rs 1,290 and below this, it has next support at Rs 1,267, while it has resistance at Rs 1,341 levels and if moves above this, it would find its next resistance at Rs 1,365.