Mentha oil suffers losses on fall in spot demand

NEW DELHI: Mentha oil prices suffered losses in futures trade on Monday on a fall in demand by consuming industries at spot markets.

Speculators cut positions in mentha oil futures due to a slump in demand from consuming industries at the spot market against higher supplies from key producing regions.

Around 12 pm, MCX Mentha oil was at Rs 1,227.10 per kg, up by Rs 24.40, or 1.95 per cent.


"Mentha slipped below crucial supports as downtrend continued. Though prices are trying to find a bottom, the ample supply in key spot markets and dismal demand continues to weigh on prices," said Mustafa Nadeem, CEO, Epic Research.

The demand in domestic as well as international market, specifically among the industrials as well, is seen muted.

"We believe mentha now can slip to its previous swing low of Rs 1,170-1,180 range in the coming days and the contract may see mostly bearish bias in prices," Nadeem added.