Mentha Oil Futures Edge Down on MCX Due to Weaker Demand and Higher Supplies

Mentha oil futures on the Multi Commodity Exchange (MCX) faced downward pressure as speculators adjusted their positions, largely driven by weak cues from the spot market due to lower demand from industries. Additionally, the abundance of mentha oil stocks in the physical market, resulting from increased supplies from producing regions, further added to the downward pressure on mentha oil prices. The price decline reflects a shift in market dynamics, influencing the futures prices.

Key Takeaways:

• Mentha oil futures for July delivery on MCX traded at Rs 943.00/Kg, marking a 3.30% decrease or Rs 32.20 from its previous closing of Rs 975.20/Kg.
• The open interest for the July contract stood at 6958 lots, indicating the number of open positions in the market.
• The August delivery contract traded at Rs 960.70/Kg, down 3.25% or Rs 32.30 from its previous closing of Rs 993.00/Kg.
• The open interest for the August contract stood at 8023 lots on MCX.
• Speculators trimmed their positions in response to weaker demand from consumers, thus affecting the market price.
• The physical market had ample stocks of mentha oil, exerting downward pressure on prices due to higher supplies from producing belts.

Statistics:

• A 3.30% decline in the price of mentha oil futures for July delivery on MCX, which translates to a Rs 32.20 reduction.
• The July contract's open interest was 6958 lots on MCX.
• The August delivery contract showed a 3.25% decrease in price, amounting to a Rs 32.30 drop from its previous closing.
• The open interest for the August contract on MCX stood at 8023 lots.
• The percentage decrease in open interest was not given, but the exact numbers provide a clear picture of the market's current dynamics.

Sources:

• Accord Fintech Pvt. Ltd. (2015)
• Contify.com