Mentha oil edged up on an uptick in spot demand

NEW DELHI: Mentha oil prices edged up in futures trade on Wednesday on an uptick in demand by consuming industries at spot markets.

Speculators raised positions in mentha oil futures as demand from consuming industries climbed amid limited supplies from key producing regions.

Around 11:20 am, MCX Mentha oil was at Rs 1,261 per kg, up by Rs 9.50, or 0.76 per cent.

Participants said mentha rebounded on the back of buying at lower demand and improved sentiments in key spot markets in Uttar Pradesh.

"The prices were stalling at almost a 1 year low and seen rebound as there was some improved demand scenario at such lower prices. Prices have seen a rebound and were able to breach previous swing highs," said Mustafa Nadeem, CEO, Epic Research.

Technical charts show mentha has resistance around Rs 1,250 and above this, it will find its next resistance at Rs 1,285.

Experts suggest to remain cautious and wait for a signal of reversal.

"We believe this short term move can sustain and can take prices to a bit higher level of Rs 1,280-1,285 in the short-term. We maintain a cautious on prices and wait for a signal of reversal from higher levels," Nadeem said.