Erasing early gains, the mentha oil prices fell back by Rs 36.70 to Rs 1,188.20 per kg in futures trade today, as speculators indulged in profit- booking, driven by subdued demand in the spot market.
Increased arrivals and fall in demand in the domestic markets further influenced the trading sentiment. All the three running contracts fell three per cent on lower limit.
At the Multi Commodity Exchange platform, mentha oil for delivery in January-month contract declined by Rs 36.70 or three per cent to Rs 1,188.20 per kg, with a business volume of 913 lots.
Similarly, the delivery for December-month eased by Rs 36.50, or three per cent to Rs 1,180.20 per kg, with a business turnover of 3,102 lots, while February contract fell by Rs 36 or three per cent to Rs 1,194.80 per kg, with an open interest of 206 lots.
The fall in mentha oil prices was mostly due to profit- booking by speculators and weak trend at spot market on subdued demand, traders said.
They said higher arrivals in the spot market mainly put pressure on the oil prices.
