Mentha may rise

COMMODITY SPIKES

Mentha futures, which have been steady at around Rs 500 a kg, are expected to see some upward movement on the back of good demand from the domestic and export markets.

According to commodity analysts, due to incessant rains in Uttar Pradesh (the major producer of mentha oil), around 40 per cent of the crop is at risk.

So far, around 60 per cent of the crop has been harvested and the arrival in the UP market is around 600-700 drums (each of 360 kg).

Arrivals were expected to rise to around 1,000 drums and so was the demand, said analysts. They added that on the Multi Commodity Exchange (MCX), there was strong support for the commodity at Rs 504 a kg.

If the market remains above this level, it can stretch up to Rs 515 a kg. Last week, on the National Commodity and Derivatives Exchange (Ncdex), volatilities prevailed with rates reaching as low as Rs 494 a kg.

On Saturday, mentha futures closed at Rs 508 a kg on the MCX where as on the Ncdex, it fell to Rs 497 a kg against previous week's close at Rs 502 a kg, down 1 per cent. Spot rates were trading between Rs 510 and Rs 513.