Mentha oil prices hit lower limit of 4 per cent to trade at Rs 1,596.10 per kg in futures trade today as the total special margin of 20% on long (buy) side kicks in on existing and running contracts.
Besides, speculators lowered exposure amid a fall in demand from consuming industries in the domestic spot market against adequate stocks on higher supplies from major producing regions of Chandausi in Uttar Pradesh.
At the Multi Commodity Exchange, mentha oil for delivery in December plunged by Rs 66.50, or 4 per cent, to Rs 1,596.10 per kg in a business turnover of 2,254 lots.
Likewise, the oil for delivery in the current month traded lower by Rs 65.70, or 3.98 per cent, to Rs 1,582 per kg in 2,064 lots.
Analysts said cutting down of positions by participants in anticipation of the total special margin that comes into effect from today led to lower prices.
Easing demand from consuming industries in the physical market against sufficient stock position on increased supplies from Chandausi too pulled down mentha oil prices in futures trade, they added.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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