Opening Commentary


On November 8th, Prime Minister of India Narendra Modi announced that small denomination bills will no longer be considered valid starting four hours after his announcement.  The banned bills could be exchanged for larger denominations at banks as long as proof of how the money was earned is given.  There were also limits placed on how much cash one could withdraw daily from bank accounts.  The demonetization is an attempt to end black market trading and tax fraud.  Given that farmers are paid in cash, the changes have had an impact on Indian essential oils.  Theoretically, without cash on hand transactions could not proceed.  One would imagine that a new barter trade would be created, encouraging a new black market situation.

Dec 2016
Dec 2016

Amyris Oil

TAGS: / /

There has been no change in Amyris’s situation.  The supply is tight.

Posted In:



Dec 2016
Dec 2016

Availability has been limited as the crop was down.  Prices have firmed.

Posted In:



Dec 2016
Dec 2016

Allyl Amyl Glycolate

TAGS: / /

China has begun to produce this material again and prices have stabilized.  Shipments should arrive in late December and become available in January.

Posted In:



Dec 2016
Dec 2016

Geranium Oil Chinese

TAGS: / / / /

With more and more acreage dedicated to grapes, prices have increased every month since July.  We do not foresee this trend ending anytime soon.  

Posted In:



Dec 2016
Dec 2016

While the 2016 crop in China was small, Indonesia kept prices stable.  With strong demand reported, prices for Citronella Oil have started to firm.

Posted In:



Dec 2016
Dec 2016

Vanillin & Ethyl Vanillin

TAGS: / / /

Low petroleum prices, currency changes, and overproduction have caused prices for both items to soften.

Posted In:



Dec 2016
Dec 2016

Turpentine & Derivatives

TAGS: / /

Reports state that Gum Rosin prices continue to trend upwards as availability of crude is limited.  Pricing of Turpentine has softened slightly as several large Gum Rosin plants have sold in order to raise cash to procure more rosin.  We have not yet seen an impact on Derivative pricing.  Levels have stayed stable against pricing in October.

Posted In:



Dec 2016
Dec 2016

Eucalyptus Oil & Eucalyptol

TAGS: / / / / /

Reports that inclement weather has impeded production are again being circulated.  Heavy rains and cold weather in the growing regions have caused prices to firm after a short interval of softening.  Currency fluctuations may ease some of these price increases.

Posted In:



Dec 2016
Dec 2016

Garlic Oil Chinese

TAGS: / / /

Prices for this product continue to climb and quality remains an issue.  Reports indicate that prices for fresh Garlic bulbs have risen as speculation continues to have its impact.  The market is currently very short on oil.

Posted In:



Dec 2016
Dec 2016

Star Anise and Natural Anethole

TAGS: / / / / / /

Reports of a small crop and of farmers’ reluctance to process because of low prices have seen prices for oil firm.  This trend may continue until Chinese New Year in January.

Posted In:



Dec 2016
Dec 2016

Cassia Oil & Natural Benzaldehyde

TAGS: / / / / /

Prices are still firm as availability of twigs, bark, and leaves is limited.  As a result pricing for Natural Benzaldehyde is also firming.

Posted In:



Dec 2016
Dec 2016

Ginger Oil

TAGS: / / / / / /

The situation with Ginger remains the same.  The conversion of boilers is still ongoing and going slowly.  Stocks of oil are limited and less was produced in early November than was hoped for.  Prices are firming.  

Posted In:



Dec 2016
Dec 2016

Litsea Cubeba & Natural Citral

TAGS: / / / /

Due to shifts in currency, prices for these items softened slightly.  However, reports estimate that total production in 2016 was only 60% of 2015’s totals.  We expect that as supplies dwindle prices will continue to firm.  

Posted In:



Dec 2016
Dec 2016

Wintergreen Oil

TAGS: / /

Prices for Wintergreen were high at the beginning of 2016.  Those dropped following the start of croptime in May.  Since then the lower prices have stopped farmers from processing and heavy rains in the growing regions reduced total production.  As a result prices have increased.

Posted In:



Dec 2016
Dec 2016

Orange Oil & Terpenes

TAGS: / / / / / / /

There seems to be no high that cannot be surpassed for these products.  Prices continue to climb as there does not appear to be any relief soon.

Posted In:




Closing Commentary


In general prices for petrochemicals have stayed soft.  Low petroleum prices and competition from India and China have had their impact.  Essential Oils, however, have increased in price.  Farmers switching to other cash crops, bad weather, and low yields have all contributed to this trend.


Try Searching By Category



or By tag