Aroma Trading Limited

Market Report August 2003

Geranium Oil
Geranium Egyptian continues to be offered at USD 5.00 - 10.00 kilo cheaper than Chinese Geranium Oil. We are led to believe there are reasonable quantities of Chinese Geranium in transit to Europe and expect Egyptian Oil to fall further in the next week or so.

Lavender Oil
The recent heatwave seems to have caused more damage than originally anticipated to this year's Lavender Crop in France. During our visit this week, a number of distillers said they will be looking to increase their prices by at least 20% on last year's Euro price. Although it is too early to say how much lower the Lavender yields are at this stage, we do anticipate there will be further increases when oil gets into the hands of resellers. Hopefully more information next month.

Pepper Oil Black
Prices of Black Pepper in India are under threat from cheap supplies imported from neighbouring Sri Lanka, which are duty free as part of a Trade Agreement between the two Countries. It is alleged that the quantities exported from Sri Lanka are in excess of the country's own production, and that Vietnamese material is being imported into Sri Lanka and exported as their own production.

Rosewood Oil
Prices offered FOB Manaus are 40% higher than at the turn of the year. The limited spot quantities we have managed to analyse are old or poor quality Rosewood Oil. Supplies will continue to be tight as availability declines year on year and prices will remain at these high levels for some time yet.

Spearmint Oil
Prices should remain stable for the coming weeks as the Chinese Spearmint crop is expected to exceed 1000 Tonnes, similar to last year's figures. Traders seem to have good stocks also.

Sunflower Seed Oil
Ukraine has recorded a significant increase in quantities of Sunflower Oil exported over similar period last season. Sources quote nearly 800,000 Tonnes of oil exported which is double the previous period. However, even this quantity pails into insignificance when you consider that Ukraine accounts for only 10% of world production.