MARKET REPORT FEBRUARY 2018
The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils and Raw Materials sourced from around the globe.
Vitamin E is produced from soybean oil, and favorable weather conditions in the Northeast of China provide a suitable environment for Soy growth this year. The soybean market supply is not adequate for the dramatic increase in demand since 2016; however, the Soybean harvest months are from September to February and the 2018 Soybean yield is estimated to increase. Vitamin E prices are still high, but the prices of both synthetic and natural Vitamin E have stopped rising and are now stable.
In Nepal, Chamomile German is harvested between February and March. Despite the less-than-ideal weather conditions, the harvesting and processing of this year's average yield continues. Market conditions for Nepalese Chamomile Oil are strong, with consistent demand and an average supply.
In the United Kingdom, Chamomile Roman is harvested between the end of June and August. Currently, it is unclear whether or not the weather conditions will be favorable in June and July for the optimal growth of the crop. If the crop grows in weather that is typical of these months, the harvest yield is projected to be almost the same as the previous year's crop. In recent years, the demand for Chamomile Roman has gradually increased, estimating approximately 5 tons. The market demand is strong and stable.
In Morocco, Chamomile Morocco is harvested between June, July, and August. Although it did not have any carry over, the 2017 harvest yielded a normal crop. The current weather conditions are favorable, and the demand is stable.
In China, Camphor is harvested in all four seasons; however, the biggest crop is yielded in the harvest season between September to January of the following year. The current growing conditions are mild, without excessive rain or dryness, projecting a stable harvest yield. In 2017, the demand began to increase, but it is presently difficult to forecast the market conditions.
In Brazil, Tangerines are harvested between the months of May and September. Despite the expectation of a normal harvest, uncertainties about the climatic conditions and the rain forecast of the next 45 days – factors that are vital for the recovery of the plantations – will make any present harvest yield projections premature. Although the demand is estimated to be high, there is uncertain supply, as the weather conditions in other growing regions experienced similar weather conditions, namely insufficient rain. A global shortage in Tangerine Essential Oil has also led to growing demand for this product each season. The demands for both the fresh fruit and the industrialized products are estimated to be stable and similar to that of previous years.