The main producing areas in China are now in their rainy season. However the government has not yet lifted their ban on distilling crude in the forests (no fires allowed). Reports indicate there will not be any new oil until Nov/Dec 2018. Reports also indicate demand has been low, but any upswing will cause prices to jump.
End of July crop will be seeding, meaning new oil will be available end-August/early-September. Reports indicate crop size should be the same size as last year’s, that is not large. New crop pricing is expected to stay firm as labor and production costs are up, and there is reportedly little urgency for farmers to collect. Citral Natural prices continue to escalate as carryover diminishes.
In China, rain has deterred more production of new oil. Early season oil was low in Geraniol, not more than 4%, so carryover at 6% was priced much higher. Reports indicate demand is low, indicating buyers awaiting better quality. The Egyptians watching Chinese prices have started to raise prices themselves, claiming crop is not as large as last year and carryover gone.
With crop due end-October/early-November market prices continue to advance. Reports are that carryover all but gone as of this writing.
Reports indicate that most processors are out of stock to distill. Autumn crop will be available after September while demand increases in mid to end-August and September. New oil Nov/Dec. Expect prices to continue to firm for the next several months.
The Spice markets are reporting this year’s crop is large forcing prices for cloves down. We have reports that many Garlic processing factories have been closed due to strict environmental policy enforcement. Even so, prices have begun to soften. However, one dealer cautions that receiving particularly low prices, you “get what you paid”. Quality still a major issue for this oil.
Rain here in the growing regions keeping production down. Processers in China have imported oil from Indonesia in order to meet demand both at home and overseas. This has kept pricing firm and availability is an issue.
A major factory has been closed, so product is limited. Prices have jumped and are expected to stay firm for several months.
Availability has increased, however prices continue to be firm. Increased labor and fuel costs are cited.
The Spice market has reported that demand for this spice has been soft. Large exports from Vietnam have been mentioned. Pricing for the oil has remained stable.
Prices have softened slightly as there are roots in the market. It would also appear that several more processors have finished their conversion to natural gas from coal and are in need of cash, so selling oil at/or near cost.
Reports from the Chinese Turpentine Conference this month have not been positive. China has been importing resin due to favorable prices, dampening farmer’s willingness to tap trees. With resin users still finding petroleum based products more attractively priced demand continues to be off. Turpentine prices continue their weekly advances. Derivatives are all higher priced and now that summer heat is in play, many factories in the growing regions slacken production. Expect prices to be firm for several more months.
Production not yet back to “normal” levels, after the rain that has been experienced. Demand is high and prices firm for Eugenol, Clove leaf Oil and Iso Eugenol.
Synthetic Menthol slackened. While new production has been stated to start in July, skepticism is rampant. Prices have stabilized as farmers are not will to lower prices.
While first cutting is over, yield has been down. With stronger demand coming from the U.S. prices have firmed.