Muted demand drags down mentha oil futures by 1.31 pc

Mentha oil prices fell by 1.31 per cent to Rs 1,636 per kg in futures trade today as speculators trimmed positions, triggered by muted demand from consuming industries at the spot market.

Adequate stocks on higher supplies from major producing regions of Chandausi in Uttar Pradesh put pressure on prices.

At the Multi Commodity Exchange, mentha oil for delivery this month declined by Rs 21.80, or 1.31 per cent, to Rs 1,636 per kg, in a business turnover of 373 lots.

On similar lines, the oil for delivery in December traded lower by Rs 20.70, or 1.24 per cent, to Rs 1,670.70 per kg in 280 lots.

Analysts said that besides imposition of total special margin of 20 per cent on long (buy) side, offloading of positions by participants due to muted demand at the domestic spot market kept mentha oil prices depressed.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)