Muted demand drags down mentha oil futures by 3 pc

Mentha oil prices tumbled by 3 per cent to Rs 1,315.40 per kg in futures trade today as speculators trimmed their positions, triggered by muted demand from consuming industries at the spot market.
Besides, ample stocks position on higher supplies from major producing belt of Chandausi in Uttar Pradesh too fuelled the downtrend. At the Multi Commodity Exchange, mentha oil for delivery this month declined by Rs 40.60, or 3 per cent, to Rs 1,315.40 per kg, in a business turnover of 839 lots. On similar lines, the oil for delivery in March month traded lower by Rs 1,322.40, or 2.99 per cent, to Rs 1,322.40 per kg in 648 lots. Analysts said offloading of positions by participants amid subdued demand from consuming industries in spot market, mainly led to the decline in mentha oil prices at futures trade.