Low demand from user industries sees oil fall for 7th straight session
Mentha oil futures prices fell by another 4% to hit lower circuit, extending its slide for the seventh straight session today, as speculators engaged in reducing their positions following supply pressure amid reports of a higher sowing.
At the Multi Commodity Exchange, mentha oil for delivery in May plunged Rs 71.70, or 4%, to hit lower circuit at Rs 1,719.60 per kg in a business volume of 117 lots.
The April contract declined by Rs 70.50, or 4%, to Rs 1,693 per kg, in a turnover of 125 lots.
Market analysts said the persistent fall in mentha prices in futures trade was due to continued off-loading of positions by speculators following reports of higher sowing in Western UP and other regions.
In addition, poor demand from consuming industries particularly, pharma, dampened the sentiment, they said.
The Centre is expected to allow more cotton for exports after a meeting of senior ministers today, sources said.