cornmintoilmenthol

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.




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cornmintoilmenthol

Cornmint Oil & Menthol


September 2017

In a few short weeks prices for Mentha Arvensis and subsequently Menthol have increased 15-20%. Some of this may be blamed on the new Service Tax enacted; some may be blamed on the weakness of the US dollar against most currencies, some may be blamed on rains in the North impacting production and transportation. There are also reports that there has been very active speculation, due to concerns about BASF’s synthetic Menthol delays in Malaysia.

With this always being a complex and difficult market, there seems to be no confusion as to crop size; much less than expected. Many processors are advising situation will be volatile for some time and DMO prices can reach new highs.




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cornmintoilmenthol

Cornmint Oil & Menthol


May 2017

With Synthetic Menthol and Menthone readily available in India, a major producer is warning customers to beware of product they purchase. This producer advises that in July, which will be crop harvest time, prices should be lower. He does not expect to see major fluctuations in the market, as increased availability of Synthetic Menthol will have its impact.




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cornmintoilmenthol

Cornmint Oil & Menthol


April 2017

Prices are still firm as cash restrictions continue to hamper trade at the farm level.  With the increasing production of synthetic Menthol looming, producers may be trying to get as much margin as possible before prices begin to collapse.  




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cornmintoilmenthol

Cornmint Oil & Menthol


March 2017

The Indian government has recently removed the cash limitations for businesses though this does not readily translate into cash transactions at the farm level.  A further impediment in one of the growing regions is police restrictions on cash as elections are due at the end of February.  Prices have firmed and are expected to stay firm until the new crop in June.




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cornmintoilmenthol

Cornmint Oil & Menthol


February 2017

With the new fiscal policies enacted in India in November, the traditional cash transactions between farmers and collectors have diminished significantly.  Less oil was collected and prices have increased at the farm level.  To meet demand, exporters turned to the MCX for Cornmint, which also pushed up prices.  A report states that current stock at the MCX is 8600 drums, down from 12500 on November 1st.  Higher oil prices have led to higher Menthol prices, putting more pressure on Natural Menthol against Synthetic.  Higher prices for Cornmint will encourage more acreage to be planted if root stock is available.  One report we have questions that availability.  




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cornmintoilmenthol

Cornmint Oil & Menthol


August 2016

Several reports indicated that the Cornmint Oil crop will be around 40,000 tons.  A reliable source has provided a state-by-state breakdown that estimates production in 2016 will be 33,860 tons.  Menthol content and average yield across all areas was normal.  L-Menthyl Acetate content showed to be slightly higher due to the crop being processed before it had fully matured.  This source also claims that stocks in the MCX warehouses are down to 16,400 drums from over 39,000 drums.  The need to replenish these stocks has had an impact on current price levels.  In the last few weeks prices have firmed.  While currency changes have been cited as a reason, restocking of the MCX warehouse has likely had an impact on the price.  




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cornmintmenthol

Cornmint & Menthol


July 2016

The most recent report of a major supplier indicates that the total crop for 2016 will be between 38000 & 40000 metric tons.  These figures are based on surveys and discussions with others in the growing regions.  Based on the limited distillation that has taken place, the supplier reports that yield per acre is down.  Since the monsoons have not occurred, it is possible that the crop will be less than estimated. With a large portion of new oil set to reach the market by mid to end July, we would expect to see prices fall.




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cornmintmenthol

CORNMINT & MENTHOL


June 2016

A reliable supplier reported that demand was strong in April and early May. Since new Oil was not available, this demand was met with stocks held in the MCX warehouse.  This same supplier estimates that the total Mentha arvensis crop is 45,000 metric tons, a 50% increase from numbers given in April.   Even with the estimated large crop, the supplier believes that prices will firm due to low carryover and strong demand.  Prices are expected to ease in June and July when large amounts of Oil usually reach the market.  




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cornmintandmenthol

CORNMINT AND MENTHOL


May 2016

One manufacturer estimates that 2016 production will be 30,860 metric tons, up from 2015’s total of 24,650 metric tons.  They also report that stocks held at India’s Multi Commodity Exchange (MCX) are half of what was held in September of 2015.  A second manufacturer reports that production this year will be 25-30% greater than that of 2015, however, he also believes that little carryover from 2015, a lack of added Synthetic Menthol production, and higher demand in 2016 will contribute to firm prices.




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cornmintoilmenthol

CORNMINT OIL & MENTHOL


April 2016

Several reports on Cornmint planting suggest that an increase in acreage will yield 40,000 tons of crude oil.  While figures like these are always difficult to verify, we will have a better idea of what to expect once news of the harvest comes out by the end of May.  Worldwide inventories are thought to be down at the moment, notably in China, which imported far less than usual from India last year.  Suppliers have cited the prevalence of Synthetic Menthol for this drawdown in imports.  

News has reached us of a supplier that has been pushing a Cornmint subspecies that they claim has several advantages.  They maintain that this variety consumes less water, increases the yield of Oil and Menthol, and can be harvested 70 days after planting rather than the typical 100.  

Our sources in India believe that a major producer of Synthetic Menthol is experiencing issues causing delayed deliveries.  This has in turn caused demand for Natural Menthol to increase.  With inventory among dealers already low, this has led to a rise in prices, but the feeling is that this rise will be short lived.




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cornmintmenthol

CORNMINT & MENTHOL


March 2016

Reports have given conflicting information on the size of the upcoming Cornmint crop.  One group estimates a 33% reduction, another a 25% increase.  More information will be available after March once an estimate of planted acreage has been made.  Cornmint Oil prices have risen recently, with increased demand and limited stocks given as a reason.




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cornmintoilmenthol

CORNMINT OIL & MENTHOL


February 2016

Sellers continue to look for more opportunities to move product, driving prices down.  While slackened demand from China is cited as a main reason, the impact of Synthetic Menthol must not be overlooked.  Offers from both Chinese and Indian sellers persist despite the dominance of the three large producers.  We can only expect Menthol prices to soften.  What the lack of demand for Natural Menthol will do to Cornmint Oil prices is a significant cause for concern.  Cornmint Oil prices are expected to rise.




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cornmintoilmenthol

CORNMINT OIL & MENTHOL


January 2016

With demand for Menthol Powder in China dramatically off, the Indians have reported that total Menthol exports this year are around two thirds of 2014/2015.  They are also reporting that speculators are taking positions in the hope that by limiting spot availability, they can force prices up.  Belief is that this strategy will be short-lived.  Menthol prices are stable but the off demand has caused Cornmint DMO to increase in price and decrease in availability.




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cornmintoilmenthol

CORNMINT OIL & MENTHOL


December 2015

Prices for Natural Menthol are weak. This trend will likely continue as both Indian and Chinese producers are offering Synthetic Menthol.  Eventually, Cornmint Dementholized prices will have to rise to cover costs.  If demand for Natural Menthol remains low, how much Cornmint will be planted in the future?




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cornmintoilmenthol

CORNMINT OIL & MENTHOL


November 2015

Lower pricing for Synthetic Menthol has doubtless caused some reformulation, keeping the pricing of Natural Menthol soft.   We have also seen Cornmint prices softening in addition to some quality issues from both Chinese and Indian vendors.  Going forward, one major Indian producer expects prices to increase due to stable demand from Europe and China.  This market will require close attention.




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