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Mentha oil extend losses on subdued demand

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 1:04 AM IST

Mentha oil prices fell further by Rs 3.70, or 0.53 per cent, to Rs 689.20 per kg in futures trade today, as traders booked profits amid fall in demand at physical markets.

Increased arrivals at spot market from the producing belts in Uttar Pradesh also weighed on the prices.

On the Multi Commodity Exchange counter, mentha oil for July contract fell by Rs 3.70, or 0.53 per cent, to Rs 689.20 per kg, with a business volume of 209 lots.

Similarly, the oil for delivery in August-month contract eased by Rs 3.70, or 0.51 per cent, to Rs 718.50 per kg, with an open interest of 284 lots, while September contract fell by Rs 2.70, or 0.37 per cent, to Rs 729.50 per kg, with an open interest of 138 lots.

Analysts said the fall in mentha oil prices was mostly due to profit-booking by speculators and weakening trend at spot market.

The expiry of July contract provided high volatility to the market rates in the futures market. There have been expectations of some more profit booking before demand picks up again at lower levels, they said.

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First Published: Jul 29 2010 | 3:28 PM IST

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