Aroma Trading Limited

Market Report March 2002

Citronella oil
Supplies of Chinese and Indonesian material are tight, so expect prices of this oil to advance further in the coming weeks.

Cocoa
In the coming weeks, the 2nd/mid crop commences on the Ivory Coast. Our sources speculate that quantities will probably be around half of previous year's yields at around 100,000 tonnes. The London spot market is already at its highest levels since the mid 80s and if the above forecast proves accurate, the upward trend will continue. Pity the poor producers in Ghana. Each summer, the Government Board of Ghana agrees prices in advance of the crop. To my knowledge, they are still the only country to do so. As a result they will not profit from the increased prices currently being paid on the African continent. One only hopes that this rule works both ways and that they get their agreed price even if there is a downturn in the price of cocoa beans.

Geranium oil
Prices continue to rise for both Egyptian and Chinese origins. Suggest you cover your needs as this one will run a while.

Lavender oil
We are still receiving attractive offers from Bulgaria for last year's production. Dealers were holding stocks hoping that prices would advance in the new year, and this has not happened.

Madagascan oil
The country is still going through one of its regular political upheavals and there have been numerous strikes. If the situation is still not resolved in the coming weeks, expect some shortages on certain grades of Ylang and Ravensara.

Orange oil
Prices remain steady so far this month. Some traders seem to think the upcoming crop of Brazilian Orange will be of bumper proportions, but traders don't seem to be in a rush to offload material on-hand.

Rosemary oil
Both Morocco and Tunisia have been experiencing very dry weather over the last few months, so the signs are not good for the new crop in April. Spain is also experiencing near drought conditions, which will affect their crop also. I will be visiting these regions in the coming weeks and we will report our findings in forthcoming reports.

Spikenard oil
Our supplier informs us that prices have trebled but no reason has been offered so far for the shortage/increase. We hope to have more details in our April report.

Sunflower seed oil
According to the Ukrainian Ministry of Agriculture, exports of sunflower seeds are down sharply on last year. According to figures published by the Ministry, exports so far this term are well under 200,000 tonnes of sunflower seed oil, down almost 70%. Major consumers are moving across to the numerous GM products available on the market at more attractive prices. Prices for Turkish seeds have steadied after their lower crop at the end of last year. It seems they suffered the hottest summer on record, with oil yields for harvested sunflower seeds about 10% lower than normal.

7th Amendment
We are just perusing a copy of this report, and there could be some serious ramifications for our industries if the bill goes through unchallenged. We will report in greater detail in the April report. Please check back next month for more...