Menthol futures surge on firm spot demand

Menthol oil futures prices surged by Rs 31.50 to Rs 995.80 per kg today, as speculators created fresh positions, even as the exchange authority hiked margins by 20 per cent to check unwanted rise in prices.

At the Multi Commodity Exchange platform, menthol oil for October-month surged by Rs 31.50, or 3.18 per cent, to Rs 995.80 per kg, with an open interest of one lot.

Similarly, the oil for November jumped up by Rs 30.30, or 3.14 per cent, to Rs 994.60 per kg, clocked a business volume of single lot.

Traders said pick up in demand in the spot market mainly pushed up menthol prices at futures trade.

 

They said the market sentiment was strong enough that the MCX authority yesterday hiked margin (deposit money) by 20 per cent to tame the persistent rise in mentha prices.

After the hike, the total deposit money that an investor needs to deposit with the Exchange for taking either buy or sell position in the mentha oil contracts, stands at around 26 per cent of the total value of the commodity.