Pricing from both China and Indonesia is firm as farmer disinterest and rains have kept production down. With crops in China due now, reports indicate that current rains in growing regions could add more pressure on prices.
Prices from both Indonesia and China are still firm as rain has kept harvesting and therefore production down. Prices for Citronellal ex-Citronella and Geraniol ex-Citronella have subsequently firmed.
Pricing for both Indonesian and Chinese oils continues to firm. With the long rainy season in Indonesia and bad weather in China, the February/March crops were off. Next crop time in China begins in July and the dry season in Indonesia should start in May.
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.
With reports that there is no carryover in the hands of factories prices continue to firm. There is a limited arrival of oil in the market in April so prices are expected to continue to firm.
Chinese production in 2016 was approximately two thirds of that of 2015. This was due to a combination of low prices discouraging farmers from distilling, environmental protection policies, and bad weather. With Indonesia acting as an alternative to China in 2016, supply was stable. Now with steady rains, their supply has become limited. As a result, prices have increased.
Production was reduced in November. Prices have firmed and are expected to increase further.
While the 2016 crop in China was small, Indonesia kept prices stable. With strong demand reported, prices for Citronella Oil have started to firm.
A previous report indicated that farmers had focused on rubber cultivation, devoting less time to Citronella. Prices have remained stable due to large amounts of oil being available from Indonesia.
Rain in the growing region of Yunnan has curtailed production. Crop season begins in July, so we do not foresee any disruption as Indonesian Oil is readily available.
This winter’s cold weather in Southern China killed the grasses there, greatly diminishing the Spring crop. With the new crop not available until August/September prices are expected to firm.
Last year’s surge in internal usage and heavy rains have pushed prices up above historic highs. No relief is expected in the near future.