Mentha oil extends gains on rising demand

May, June contracts gain 0.2% each as traders enlarge positions on lower arrivals from growing regions

Extending gains for the fourth straight day, mentha oil prices advanced by 0.26 per cent to Rs 855 per kg in futures trade today as speculators enlarged positions on the back of upsurge in spot demand.

At the Multi Commodity Exchange, mentha oil for delivery in May gained Rs 2.20, or 0.26 per cent, to Rs 855 per kg in business turnover of 159 lots.

The June contract traded higher by Rs 1.80, or 0.21 per cent, to Rs 864.50 per kg in 55 lots.

Analysts said apart from a firming trend at spot market on rising demand from consuming industries, tight arrivals from producing regions kept mentha oil prices higher at futures trade.