Mentha oil declines 0.63% on sluggish spot demand

Traders trim positions as higher arrivals from Chandausi fuel downtrend

Mentha oil prices went down by 0.63 per cent to Rs 706.30 per kg in futures market today after traders trimmed positions due to sluggish demand from consuming industries in the spot market.

Besides, adequate stock positions in the physical market due to increased arrivals from Chandausi in Uttar Pradesh put pressure on mentha oil prices.

At the Multi Commodity Exchange, mentha oil for delivery in December month declined by Rs 4.50, or 0.63 per cent to Rs 706.30 per kg in business turnover of 125 lots.

On similar lines, the November contract traded lower by Rs 4.30, or 0.62 per cent to Rs 694.60 per kg in 395 lots.
 

Analysts said off-loading of positions by speculators on the back of subdued demand from consuming industries in the spot market, mainly led to the fall in mentha oil prices in futures trade.