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Mentha sheds 4%, hits lower circuit

Low demand from user industries sees oil fall for 7th straight session

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 3:24 AM IST

Mentha oil futures prices fell by another 4% to hit lower circuit, extending its slide for the seventh straight session today, as speculators engaged in reducing their positions following supply pressure amid reports of a higher sowing.

At the Multi Commodity Exchange, mentha oil for delivery in May plunged Rs 71.70, or 4%, to hit lower circuit at Rs 1,719.60 per kg in a business volume of 117 lots.

The April contract declined by Rs 70.50, or 4%, to Rs 1,693 per kg, in a turnover of 125 lots.

Market analysts said the persistent fall in mentha prices in futures trade was due to continued off-loading of positions by speculators following reports of higher sowing in Western UP and other regions.

In addition, poor demand from consuming industries particularly, pharma, dampened the sentiment, they said.

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First Published: Apr 26 2012 | 1:37 PM IST

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