Mentha oil extends gains on rising demand

October, November contracts rise 0.4% each as traders enlarge positions

Rising for the fourth straight day, mentha oil prices were up by 0.39 per cent to Rs 875.60 per kg in futures trading today as speculators enlarged positions amid rising demand from consuming industries in the spot market.

Besides, tight stocks position following restricted supplies from producing region supported the upside.

At the Multi Commodity Exchange, mentha oil for delivery in October rose Rs 3.40, or 0.39 per cent, to Rs 875.60 per kg, in a business turnover of 277 lots.

The November contract gained Rs 3.30, or 0.37 per cent, to Rs 887.70 per kg in 99 lots.

Analysts said besides rising demand from consuming industries in the spot market, restricted supplies from producing belts, mainly kept mentha oil prices firm at futures trade.