MARKET REPORT MAY 2017
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.
The normal growing conditions for Ginger project that the harvest months of November, December, and January will see a yield that is almost the same as previous levels. The global demand for Ginger Essential Oil is about 70-80 tons annually. Chinese environmental safeguards that make the oil distillation much more difficult in the future can result in higher oil prices.
This year's growing conditions for Citronella Ceylon are favorable, and the yield is expected to be higher than the previous year. There has been more of a local demand for Citronella Essential Oil from local manufacturers, who are buying monthly according to their requirements for balms, soaps, and disinfectants. During the harvest months of February to March, June to July, and October to November, a higher amount of oil can be distilled; however, a drought or a rainy season will result in an inability to harvest. Citronella Ceylon prices were high in the previous two years, but will decrease this year.
Growing conditions for Wintergreen have been normal with a projected yield of less than 10-20% for the harvest months of July and August. The global demand for this oil is approximately 50 tons annually. Market conditions forecast that that the oil prices will remain firm.
In 2017-2018, the growing conditions for Cardamom will depend on the South West monsoon in the months of June and July. Currently, India is expecting a good monsoon. It is too early now to project a harvest yield for the months of August to November. Higher demands for Cardamom are seen in the months of May to June and during the Indian festival season from October to December. The demand lean period occurs between the months of July and September. The market is volatile, thus various factors cause pricing to fluctuate.
Avocado Oil production is limited in Mexico, as most of the fruit is distributed to foreign or local markets, leaving only 4% of the avocado yield to be used for oil production. There is increased demand and limited availability, but the prices remain stable. Some changes are to be expected in the second half of the year.
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 Oil harvest months are from September to February and the 2017 Soybean yield is estimated to increase.
Less Glycerine output from the oleochemical manufacturer has caused a market shortage despite a firm demand for Glycerine, causing its prices to rise. Glycerine sales for upcoming festive seasons forecast a continuous rise in demand for Glycerine. At present, supply volumes are neither too high nor too low, and supplies are available until the end of June with an ongoing firm demand.