Mentha oil futures zooms 4% on firm spot demand

Mentha oil futures prices shot up to hit a daily upper limit by gaining four per cent to Rs 1,242.80 per kg today on firming trend at spot market on rising domestic and export demand against less arrivals.

All the three running contract hit daily upper limit of four per cent set by the exchange authority to check an unwanted surge in the prices.

At the Multi Commodity Exchange counter, Mentha oil for January delivery surged by Rs 47.80, or four per cent, to Rs 1,242.80 per kg, with a business turnover of just one lot.

Similarly, the oil for delivery in December spurted Rs 47.40, or four per cent, to Rs 1,231.60 per kg, with a business volume of 64 lots, while November-month delivery increased by Rs 46.70, or 4 per cent, to Rs 1,214.50 per kg in 483 lots.

Speculators were bullish in the medium term in mentha trading on expected further pick-up in domestic and export demand at lower levels.

Reports of lower production and rising demand from China further provided support to the prices in futures trade.