MUMBAI (Commodity Online): Mentha oil futures traded higher on the MCX counter due to the short covering at the lower levels ahead of contract expiry Friday.

MCX Mentha Oil August contract increased by Rs 8 per kg in last two days and were trading at Rs 724 per kg. Now support for the Menthol is seen at 716.2 and below could see a test of 711.2. Resistance is now likely to be seen at 726.6, a move above could see prices testing 732.

As per latest release by Spice Board of India, Mint exports in June surged by 32 percent to 2,500 tonnes and up 28 percent in terms of the export earnings to Rs 16,684.00 lakh.

Moreover, the total crop size of the mentha oil is likely to be around 25000-27000 tonnes in the current year against 32000 tonnes reported last year.

Mentha oil August contract dropped Rs 1.1 and settled at Rs 721.1 a kg fall in demand at physical markets. Increased arrivals at spot market from the producing belts in Uttar Pradesh also weighed on the prices.

There have been expectations of some more profit booking before demand picks up again at lower levels. The contract made intraday low of Rs 716.7 a kg and high of Rs 727.1 a kg with the volume of 1808 and total open interest for the same contact was at 4262.

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