Prices have continued to firm on indications that Florida’s crop will be smaller than anticipated. Prices and availability are not expected to ease.
Indications are that by late November / early December a significant (?) quantity of oil will enter the market. The impact of this anticipated expansion of supply has been felt through a slight easing of prices. Reports state that farmers are selling stocks of crude oil now in anticipation of further reductions. Any spurt in demand before the end of the year will likely cut into these price reductions.
The normal Garlic season in China is August through October. Demand for fresh Garlic continues to be strong. The high cost of bulbs, increased labor costs, new equipment to meet environmental rules, and low yields will likely cause the price to climb even higher for many months. It is hoped that pricing may ease in July or August 2017.
Several reports have indicated that the production of Star Anise “fruits” was lower than expected. Offers have increased slightly since September but pricing is expected to be stable until the Chinese New Year in January. Traditionally, prices increase for most oils as farmers need money for their celebrations.
Reports from the harvest that began in late September indicate that there are fewer leaves and twigs available than in last year’s harvest. It is also stated that much of what will be available has already sold so prices are anticipated to increase.
Reports still advise that there is a shortage of dried roots and that the conversion of boilers to meet environmental standards is progressing slowly. With the crop time November through March, prices are anticipated to climb even higher after Chinese New Year, when demand for Oil usually surges.
Reports continue to advise that floods and heavy rains during August and September resulted in fewer berries available for processing. Additionally we have reports that yields are down, suggesting that the price will increase until the new crop in 2017.
The devastation caused by Hurricane Matthew has worsened the situation for this already distressed ingredient.
Here as well, Hurricane Matthew has caused turmoil in the supply of this ingredient.
A Spice Journal has recently reported that a major trader in Clove and Clove Oil has advised that there are issues with the Madagascar Crop. It is expected to total 9000 tons this year rather than the normal 13000 tons. With carryover at 2000 tons or less, prices for both Cloves and their oil will continue to rise.
After firming, prices have stabilized.
On the week of October 15th two typhoons, Sarika and Haima, both struck China. The resulting heavy rains hampered production in the Pine growing regions. There are also reports that several Gum Rosin plants were damaged. These influences have caused Turpentine prices to rise dramatically. We have seen offers for Dihydro Myrcenol, Iso Bornyl Acetate, and Camphor Powder all jump this week. It is believed that this trend will continue for the foreseeable future.
Allyl Amyl Glycolate is still tight as a factory is currently still in the trial phase of producing this ingredient. Relief is expected sometime in December.
This year’s cultivation has been less than last years and with the harvest over in September prices continue to be firm. Reports suggest that with no new production until May 2017 prices are expected to be firm until then.
Prices surged in late September in response to strong demand and the news from the Chinese market. These increased prices may contribute to more cultivation next year, making this elevated pricing short-lived.
A previous report indicated that farmers had focused on rubber cultivation, devoting less time to Citronella. Prices have remained stable due to large amounts of oil being available from Indonesia.
We have witnessed less and less availability over the past several years. Use of Valerian in Traditional Chinese Medicine has been cited as a reason. Prices are continuing to firm as one report claims that less than 800kgs of Oil has been produced from this year’s crop.
Cedarwood Oil in China has been short for several months with much speculation as to the reason. A new report states that the Chinese Government has paid more attention to deforestation and environmental protection. Prices for Methyl Cedryl Ketone, Cedryl Methyl Ether, Cedryl Acetate, and Cedrenol have all increased.
Availability continues to be limited, prices are firm.