With high temperatures and heavy rains in Jiangxi Province and rains in Yunnan, Guangxi and Guangdong, productions of Crude Gum was down. Prices for Turpentine have continued to stay firm. Both Alpha and Beta Pinene, Chinese Borneol, Camphor Synthetic have all seen prices increase.
Prices have recently spiked up. Speculation on the MCX, strong sales of powder to China, and strong demand cited.
Prices from Indonesia still firm, offers still limited.
Spring crop produced about 500 metric tons, same as last year; however market prices as reportedly near cost. This has discouraged processors and it is estimated that autumn crop will be only 100 metric tons as opposed to last year’s 300.
Factories that were closed for environmental reasons are just being allowed to open this month. Prices continue to be firm as feedstock prices are up.
We have reports that many laborers in the growing regions have left for work in the cities that are expanding. Currently oil is limited and prices continue to firm.
Here too, rains have lessened Chinese crop. Prices are firm and reports indicate that they will continue to rise.
Reports from China are not optimistic. Rains in the growing regions impacted the availability of product for processing. Added to this is a shortage of workers to manually pick the fruit and low yields has caused total output to be less than last years. Prices are expected to climb and supply to be limited.
While this year’s crop was higher than last year’s, prices have started to firm. Cited are costs of capital, labor and inventory.
Impacted by both cost of Phenol and Methanol, as well as implementing new equipment for environmental control, prices have continued to firm.
The current U.S. Crop, completed in July was estimated by the USDA to be only 45 million boxes, some 30% less than last year’s total. Citrus Greening continues to wreak havoc on groves, having destroyed a large percentage on trees. Brazil’s upcoming crop is forecasted to also be smaller than the last one. With strong demand for fresh oranges in Latin America and decreasing demand for juice, less oil will be available. Prices should be firming.
Heavy rains in the growing areas have kept volumes of oil down. One report we have states that there will be no new oil before November and that sellers have suspended offers. With demand traditionally heavy the end of autumn, it is expected that prices will continue to be firm.