Aroma Trading Limited

Market Report August 2004

Grapefruit / Orange Oil
Demand has increased on the damage reports from Florida after Hurricane Charley. We arrived in Orlando Airport four hours before the hurricane hit central Florida, and saw first hand the devasting damage caused. Although it was impossible to visit all of the growing areas, the general consensus was that in excess of 20% of the Orange groves were lost, and at least the same percentage of Grapefruit. Although August is usually the peak holiday months, the demand for Pink Grapefruit Oil with minimal Nootketone content caused prices to increase another US$ 8-00 before then end of the month. Prices for Orange Oil only increased slightly, allowing the traders holding stocks of higher cost Brazilian Oil to sell and minimise their losses

Lavender Oil
Bulgarian production already in full swing, and indications are that yields are similar to last year, plus there is a carry over of stock from 2003 crop. France has also commenced distillation and we do not expect any surprises or bad news from that origin. More details will follow next month.

Ylang Ylang Oil
Some fractions of Ylang Ylang Oil are currently unavailable. Grades Complete and Premiere have appreciated by up to 10% as many traders are on vacation.