Mentha oil turns weak on profit booking

Mentha oil prices fell by Rs 9.50 to Rs 1,177.20 per kg in futures trade today, as traders indulged in profit booking, driven by subdued demand in the spot market.

On higher arrivals and fall in demand in the physical market kept trend weak.

At the Multi Commodity Exchange counter, mentha oil for delivery in January declined by Rs 9.50, or 0.80 per cent, to Rs 1,177.20 per kg, with a business volume of 448 lots.

Similarly, the delivery in February eased by Rs 9.20, or 0.78 per cent, to Rs 1,163.20 per kg, with a business turnover of 98 lots. While March-month delivery contract fell by Rs five, or 0.40 per cent, to Rs 1,160 per kg, with an open interest of 39 lots.

The fall in mentha oil futures prices was due to profit-booking by speculators and weak trend at the spot market on subdued demand, traders said.

They said higher arrivals and fall in demand in the spot market, put pressure on the oil prices.