The major producer in China was forced to stop production due to tightening regulations. While now currently producing on a limited basis, available quantities are staying in the East, leaving the West short. This has caused stress on the western producers who run on campaigns and find it extremely difficult to alter production plans. Prices should be firm for some time.
In Bulgaria, a late cold snap and then bad thunderstorms with hail have impacted the crop. Additionally, reports indicate the Russian crop was limited and sold out against advanced orders. Total production is down. Strong demand in the wake of these reports has also contributed pressure on the supply. Prices have jumped substantially over last year’s.
Reports continue to advise that the Brazilian crop will be quite large. Good weather conditions have led to a large amount of fruit becoming available. With reports of unfulfilled contracts that need to be satisfied, prices may not soften as much as some might hope. It appears that the major processors have not yet made any offers. Prices have eased slightly.
The major growing region has experienced poor weather. Prices have firmed and are expected to remain so for the foreseeable future.
Continued lack of supply, along with strong demand, has kept prices firming on a weekly basis. Bad weather in the growing regions will have an impact on what will be harvested for the traditional end of year supply.
Production still limited due to environmental constraints. Spice market indicates that crop was good, but exceptionally strong demand has caused prices per kilo for bulbs to increase, rather than soften. Prices continue to firm and correct quality is still difficult to locate.
Rain in the growing regions has slowed harvesting but more importantly has had an impact on the quality of oil being produced. Citral content is reported at 60-62%, below the normal levels of 67-68%. This has forced producers to process more mass in order to meet specs. This in turn has resulted in prices increasing instead of softening. While still early in processing, reports indicate situation will not change.
Still watchful of quality, prices remain firm.
Here too, prices firm as drought in growing regions has not been fully compensated by monsoon rains.
With too much rain in Southern China, there are potential reports that much of the fall crop has rotted. With limited raw material available and higher labor costs, prices have increased. We would expect this to last until the spring crop.
Production at one of the three producing factories in China is in the process of being expanded. This expansion is supposed to be completed by late Autumn. While there are quantities available, prices are still high, and probably won’t soften until this producer is ready with his expanded capacity. Circumstances and actual demand will determine what will happen to prices.
Prices for oil have dropped to a very low level. Reports indicate other crops were more profitable for farmers, so area planted for Coriander reduced by at least 50%, quite possibly by 67%. Prices for new crop seed continue to firm as it appears carryover positions on seeds were not properly stored and are unusable. We expect prices to rise as demand increases.
The lengthy rainy season experienced in Indonesia has seriously impacted the crop. Along with thunderstorms and strong winds, trees did not flower normally; producing fewer cloves. We are now in the “dry” season, but have yet to see any significant easing of prices; actually they seem to be very firm.
Also affected by rain, there appears to be a shortage of good quality oil at this time. There is a report that when prices dropped precipitously, several processors closed, unable to cover overheads. As a result prices continue to firm.
When the government forced processors to switch to gas fired burners from coal, production reportedly switched to a different province. This caused prices to soften, albeit for a very short time. It did not take long before the government forced the change to take effect in that province also. With lack of dried roots available prices are firm.
Current reports confirm that this year’s total production is less than that of last year. They also advise that carryover is limited. With speculators being active in the market prices continue to firm.
In a few short weeks prices for Mentha Arvensis and subsequently Menthol have increased 15-20%. Some of this may be blamed on the new Service Tax enacted; some may be blamed on the weakness of the US dollar against most currencies, some may be blamed on rains in the North impacting production and transportation. There are also reports that there has been very active speculation, due to concerns about BASF’s synthetic Menthol delays in Malaysia.
With this always being a complex and difficult market, there seems to be no confusion as to crop size; much less than expected. Many processors are advising situation will be volatile for some time and DMO prices can reach new highs.
Similar to Arvensis, no good news here. Production down from last years; less acreage and heavy rains in the North. Prices have jumped and are expected to stay firm until next year’s crop.
With increasing costs and heavy rains in Southern China prices are firm. With strong worldwide demand for Turpentine we do not see prices easing until mid to late autumn.