With the Chinese Crop seriously impacted by heavy rainfall prices continue to firm. As a reference, 2015 China’s production was 2,300 tons, 2016, 1,500 tons and 2017 1,200 tons. The estimate for 2018, is lower than 2017.
Indonesia, suffering heavy rains also, has had limited availability.
Prices are firm.
Poor crop in China, strong demand = high prices.
Here too, rains have lessened Chinese crop. Prices are firm and reports indicate that they will continue to rise.
With offers from China non-existent, pressure on Indonesian has seen prices climb. Availability is still an issue.
Rain here in the growing regions keeping production down. Processers in China have imported oil from Indonesia in order to meet demand both at home and overseas. This has kept pricing firm and availability is an issue.
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.
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.