The limited availability and high prices in this market continue.
Prices continue to firm as supplies are being exhausted. With spring collection still two months away we do not see any easing of prices.
Prices continue to firm. Reports still state that there is no new oil being produced and that many factories have not yet reopened. Additionally, quality remains an issue.
Pricing for both ingredients has been stable but dealers are advising that there is a possibility that the new crop will be off. With carryover depleted, they are advising that prices may increase dramatically.
Prices continue to inch upward as carryover is dwindling. With oil from the spring crop not due to reach the market until June, we expect to see this trend continue.
Reports continue to state that many factories have still not converted from coal-fired boilers. With demand for fresh Ginger still strong very little oil is being produced.
One report states that high prices have encouraged more planting of Geranium in China for 2017. A dealer estimates that 20% more acreage has been planted and that hopefully yield will be better than in 2016. Until oil is available in July, prices will remain at their currently high level.
Reports continue to state that pricing will firm until September when new crop oil becomes available.
With a deadly cyclone in Madagascar and incessant rains in Indonesia, prices for the following ingredients are rising: Clove Leaf Oil, Clove Stem Oil, Eugenol, Methyl Eugenol, Methyl Iso Eugenol, Iso Eugenol, Eugenyl Acetate, Iso Eugenyl Acetate, and Vanillin ex Eugenol. From Madagascar, expect the Ylang Oils and Vanilla to escalate as well.
The last report we received prior to this writing had “Gum Turpentine Rocketing” as a headline. The reported cause of this increase in demand is that several derivative producers started ordering large amounts in order to fulfill contractual requirements.
There have been heavy rains in Indonesia and continued rain in the growing regions in Southern China at the end of 2016. The Chinese crop is reportedly off by 15-20% and internal demand in Indonesia is strong. This has translated into higher prices as availability is becoming limited.
Here too heavy rains in 2016 caused production to be less than that of 2015. Prices have risen from their lows and quality can be an issue.
With limited feedstocks in China and heightened concern over the pollution these products cause, pricing for both ingredients has increased.
Prices are still firm as cash restrictions continue to hamper trade at the farm level. With the increasing production of synthetic Menthol looming, producers may be trying to get as much margin as possible before prices begin to collapse.
Pricing has spiked upwards as a key requirement for the production of US Natural is currently not available. Due to factories closing there are also shortages on synthetic versions of these products.