NEW DELHI: Mentha oil prices extended losses in futures trade on Friday on slump in demand for the commodity by consuming industries at the spot markets.

Speculators trimmed positions in mentha futures, triggered by muted demand from consuming industries at the spot market and adequate stocks on higher supplies from the major producing regions.

Around 1:35 pm, MCX Mentha oil was at Rs 1327.10 per kg, down by Rs 27.70, or 2.04 per cent.

"Mentha is consolidating between Rs 1,360 and Rs 1,320 with a short-term positive bias. Though, it would be crucial to see how long it holds above Rs 1,330 since there has been lacklustre demand at the spot market," said Mustafa Nadeem, CEO, Epic Research.

Mentha oil has been witnessing selling pressure on any rebound since April this year.

"Prices are witnessing lower volume on an uptrend while speculators are aggressive on a rise. We believe Rs 1,350-1,370 should act as resistance while prices may continue the downtrend with the possible move towards Rs 1,280," said Nadeem.