The recent cold wave that sent temperatures falling luckily stayed north of the major growing regions, saving whatever crop remained. The USDA reports no change in January crop figures from December.
Prices continue to rise as supply cannot cover current demand. The prolonged rains that occurred in November hampered collection as well as reducing oil content in leaves. Many suppliers are unable to offer while others who can, offer with prices good for that day only. This situation is not expected to ease until August or September.
With petroleum prices rising, prices for both items are increasing due to their feedstocks being petrochemicals.
With the autumn crop processing already started one would expect prices to ease. However, reports indicate that with the higher prices reached several months ago, farmers are staying firm. The amount of new oil reaching the market is reportedly limited and current offers reflect this. More oil from “fruits” is available as Natural Anethole offers can be found. Anise Oil offers are extremely limited at present.
With major producers limited to less than half of their normal output due to environmental controls, prices are climbing as availability is limited.
As mentioned above, prolonged heavy rains kept output down. One report indicates total produced in 2017 was only 40% of 2016’s total and only 25% of 2015’s. Besides the rains, low prices have discouraged farmers. With the extraordinary demand arising this year, one would expect that there will be an overabundance in 2019, starting the cycle again.
Prices continue to climb and since new crop is not available until the autumn there are indications that supply will be exhausted long before then.
Due to several years of relatively low prices, farmers were reluctant to distill this year. With the current shortage of synthetic Hydroxycitronellal and Citronellal, and heavy rains keeping production of Citronella oil extremely low, Citriodora demand has far outstripped current supply. Reports indicate prices will continue to climb until new crop oil becomes available late autumn.
Similarly to Clove, the cyclone’s impact was damaging to the crop of Ylang Ylang. Supply is expected to tighten for the near future.
The recent reports we have received continue to advise that prices for gum turpentine are firm. IBA prices are firm and odor quality issues are beginning to surface. For Camphor Gum a major producer is limiting production of both USP and DAB, prices are increasing weekly. For Dihydromyrcenol several factories in China and India claim to be overbooked. No relief is expected until April/May but material is offered at very high prices. Terpineol demand has outstripped supply and prices have climbed.
One supplier has circulated a report in which the BASF website report is cited:
“in its advisory of 19th December has indicated that Citral plant will be operational only after the 31st of March.”
Suppliers of synthetic Menthol will resume only after the new crop of 2018 Arvensis is over. With reports that inventories in China are low, prices should stay firm. Offers received for any Cornmint Oil and derivatives are still valid for the same day they are made.
Strong demand has kept prices firm. Limited availability has led to poor quality material entering the market place and being offered a current premium pricing.
With heavy rains during peak harvesting time supply has been limited. With it being winter now in the mountains, prices should be firm until early summer.
Very little oil has been produced and quality has been an issue. Prices continue to climb.
Heavy rains in China have kept production down by some 20%. Egypt, watching prices climb in China, has seen prices climb also.
Damage cause by Cyclone Ava has impacted the Clove crop in Madagascar. Supply is expected to tighten for the near future.