Mentha oil gains 0.71% on pick up in demand

Traders create fresh positions as restricted supplies from producing regions fuel uptrend

Mentha oil prices rose 0.71 per cent to Rs 918.20 per kg in futures trade today as traders created fresh positions, supported by rising demand from consuming industries in spot market.

At the Multi Commodity Exchange, mentha oil for delivery in November rose by Rs 6.50, or 0.71 per cent, to Rs 918.20 per kg, clocking a business volume of 330 lots.

The oil for October delivery traded higher by Rs 5.80, or 0.64 per cent, to Rs 904.40 per kg, with a trading volume of 338 lots.

Analysts said fresh positions built up by speculators on the back of a rise in demand from consuming industries in the spot market against restricted supplies from Chandausi in Uttar Pradesh led to rise in mentha oil prices at futures trade.