Mentha oil slips on muted spot demand amid ample supply
Mentha oil is forming a bearish engulfing pattern as bulls fail to hold higher levels.
Commodity Summary MCX
Speculators trimmed positions in mentha oil futures due to a fall in demand from consuming industries at the spot market against adequate supplies from key producing regions.
Around 11 am, MCX Mentha oil was at Rs 1,322.40 per kg, down by Rs 10.90, or 0.82 per cent.
Market participants said fundamental concerns are causing the prices to remain bearish.
"Muted demand at the spot market amid ample supply in key markets of UP, while at the same time, higher production estimates have taken a toll on prices," said Mustafa Nadeem, CEO, Epic Research.
Technical charts portray an uninspiring picture.
"Mentha oil is forming a bearish engulfing pattern as bulls fail to hold higher levels, with selling around Rs 1,350-1,360. We believe it may remain the same in coming few weeks and mentha oil can slip to lower levels of Rs 1,280-1,290, while Rs 1,350 is now resistance," Nadeem added.