Finance Update

Mentha oil prices: Mentha oil prices little changed; muted demand weighs

Analysts say mentha oil prices may come lower in coming days due to the oversupply of it at the spot market.

ETMarkets.com|

Apr 10, 2019, 11.54 AM IST

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Muted demand from consuming industries at the spot market and adequate stocks on higher supplies from the major producing regions weighed on the prices.

NEW DELHI:

Mentha oil prices

edged up with nominal gains in futures trade on Wednesday.

Around 11 am, MCX Mentha oil was at Rs 1,469 per kg, up by Rs 2, or 0.14 per cent.

Muted demand from consuming industries at the spot market and adequate stocks on higher supplies from the major producing regions weighed on the prices.

“Mentha (April) has taken a hit in the last few days as prices continue to decline amid abundant supply in the spot market and expectations of a rise in production,” said Mustafa Nadeem, CEO, Epic Research.

“The prices are expected to decline further as they have broken a few crucial supports that were established in the last three months. There is support around Rs 1,480-1,470, but with deteriorating long positions and fundamentals pointing to an increase in overall production, any upside will be seen as an opportunity to go bearish,” he added.

Analysts say mentha oil prices may come lower in coming days due to the oversupply of it at the spot market. “We believe the downtrend may continue and prices can slip to Rs 1,410- 1,420 going forward,” said Nadeem.

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Source

Prakash Poojary
Business Analyst

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