NEW DELHI:
Mentha oil prices climbed in futures trade on Monday 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 am, MCX Mentha oil was at Rs 1,232 per kg, up by Rs 19.80, or 1.63 per cent.
"Mentha rebounded on the back of short covering and support that is present around Rs 1,200. The recent bounce can also be attributed to some demand that is coming in at much lower prices which have not been witnessed in the last one year," said Mustafa Nadeem, CEO, Epic Research.
However, barring occasional gains, the commodity has been witnessing selling pressure due to muted
spot demand while spot markets are seeing ample supply.
"The overall
trend is still bearish and it is too early to call it a trend reversal that can take prices further up," said Nadeem.
"We see resistance around Rs 1,250-1,260 and some pressure can be seen from those levels as technical and fundamentals at large are still bearish," he added.