October
Market
Report

WELCOME TO A PERSPECTIVE BY BERJE; A TOOL DESIGNED TO SHARE OUR INSIGHT ON  A GLOBAL RANGE OF PRODUCTS. OUR MARKET REPORTS ARE STOCKED WITH REGULAR UPDATES ON GROWING REGIONS, CROP CALENDARS, AND LONG TERM PRICE TRENDS OF THE MOST CRITICAL INGREDIENTS IN FLAVOR AND FRAGRANCE COMMERCE.


Opening Commentary


October 2017

Bad weather continues to plague the industry this year. A prolonged rainy season in Indonesia, heavy rains for two months in Southern China, drought in Southern and Central India, and heavy rains and flooding in Northern India have all contributed complications. In the Americas, Hurricanes Harvey, Irma, and now Maria caused billions in damage and disrupted supply chains.

ORANGE
OIL
&
TERPENES

ORANGE OIL & TERPENES


October 2017

As of this writing, total damage to Florida’s Orange and Grapefruit crops has not been established. Estimates on Orange run anywhere from 30% to 75% of crop damaged while Grapefruit seems to have survived better. It will take some time before actual figures are in though it is safe to say that yield, which was originally greater than last year’s 68 million boxes, will be significantly lower.






Posted In
Citrus

EUCALYPTUS
&
EUCALYPTOL

EUCALYPTUS & EUCALYPTOL


October 2017

Reports continue to advise of a major shortage of Eucalyptus Oil. Besides the two months of continuous rain in the growing regions, a major tax reform policy has hampered payment to the farmers.  This has resulted in higher prices. No relief is immediately expected as demand stays firm but we continue to monitor the situation.






Posted In
Herbs

GARLIC
OIL
CHINESE

GARLIC OIL CHINESE


October 2017

No changes here. Pollution control has stymied production, speculation and demand for fresh has caused prices for bulbs to go from 1.6 RMBY/kg to 4.4 RMBY/kg. Prices are firm and quality issues abound.






Posted In
Herbs

Camphor GUM

WHITE
CAMPHOR
OIL
CHINESE

WHITE CAMPHOR OIL CHINESE


October 2017

Prices here have jumped, and there is a notable change in quality today from regular suppliers. We have been advised that a major factory has stopped producing.






Posted In
Herbs


LITSEA
CUBEBA
&
NATURAL
CITRAL

LITSEA CUBEBA & NATURAL CITRAL


October 2017

The crop is off due to the rains and reports continue to state that whatever was harvested was low in Citral. Prices keep rising as demand appears to outstrip supply. We have been advised that prices will continue to firm and that there will be shortages until the new crop in August 2018.






Posted In
Herbs

CASSIA
OIL
&
NATURAL
BENZALDEHYDE

CASSIA OIL & NATURAL BENZALDEHYDE


October 2017

Reports continue to advise that the upcoming autumn crop will be less than that of 2016. They also advise that due to the BRICS meeting in Xiamen, a major processor was forced to suspend production during September. Pricing seems to have stabilized for the present but any unexpected demand could cause this to change.






Posted In
Spices

WINTERGREEN
OIL

WINTERGREEN OIL


October 2017

In 2016 prices dropped dramatically discouraging collection of raw material. May – July saw heavy rains in the growing regions, another impediment to collection. Prices have firmed and it has been reported that prices are expected to climb higher.






Posted In
Mints

CORNMINT
OIL
&
MENTHOL

CORNMINT OIL & MENTHOL


October 2017

With a smaller crop, speculation has continued to fuel price increases. Reports/rumors that BASF’s Malaysian plant has suffered additional setbacks and will be delayed further have not helped this situation. Arvensis and Menthol prices firm.






Posted In
Mints

TURPENTINE
&
DERIVATIVES

TURPENTINE & DERIVATIVES


October 2017

The latest report we have (September 23rd) advises that prices for Gum Turpentine in all three growing regions increased from the prior week.  It also states stocks of Gum Turpentine are low and processors are holding off waiting for higher prices.






Posted In
Synthetics

Closing Commentary


October 2017

We have seen prices for downstream products continue to firm. While the weather and environmental regulations have played a very important factor in pricing, the current weakness of the US Dollar has also played a role. Against certain major currencies the value has dropped 6 to 7% in a few short weeks.