Mentha oil futures succumbs to profit booking

Mentha oil prices fell back by Rs 13.90 to Rs 1,116.10 per kg in futures trade today, as traders indulged in profit-booking, driven by subdued demand in the spot market.

Higher arrivals and fall in demand at the physical markets kept the trading sentiment weak.

At the Multi Commodity Exchange platform, mentha oil for delivery in January-month contract declined by Rs 13.90 or 1.23 cent to Rs 1,116.10 per kg, with a business volume of 606 lots.

Similarly, the delivery in February-month contract eased by Rs 13.30, or 1.17 per cent to Rs 1,123.10 per kg, with a business turnover of 143 lots. 

While December-month contract fell by Rs 12.60 or 1.12 per cent to Rs 1,104 per kg, with a business turnover of 1,236 lots.

Traders said fall in mentha oil prices was due to profit booking by speculators and weak trend at spot markets on subdued demand, traders said.

They said higher arrivals in the spot markets also weighed on the prices.