Market Report September 2001

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Bergamot Oil
Regular supplies of good quality Bergamot Oil from the Ivory Coast have led to a softening of Italian prices. Argentinian material will surely follow the downward trend.

Caraway Seed Oil
Our supplier informs us that supplies of Caraway Seed have tightened in Europe. Increased demand has pushed prices higher by almost 15 per cent. European speculators are holding quite substantial stocks, in excess of 4,000 Tonnes, but are waiting for higher prices before selling.

Cocoa
Prices of Ivory Coast material steady in the weeks prior to the main crop. Forecasts differ depending on which company you speak to. It seems certain there will be some crop deterioration. Production in Nigerian Cross River State is suspended due to heavy rains. If poor weather continues this month, there is concern with Black Pod disease. Cross River produces around a quarter of the country's annual output.

Eucalyptus
Chinese material is still in short supply and higher-than-expected prices are being maintained. Latest reports suggest it will be at least early November before supply situation improves.

Geranium Oil
Chinese material continues to be more expensive than Egyptian. Recent adverse weather in Yunnan is reportedly the cause of higher prices.

Nutmeg Oil
Jakarta traders forecast that due to extensive flooding and landslides, the total production of nutmegs will barely reach half of the levels reached in the late 90s. Heavy rains have knocked mature fruits from the trees, and some farmers have harvested too early, causing this problem.

Palm Oil
A report from Indonesia claims that exporters will not reach their target of 4.2M tonnes for this calender year. A substantial reduction in output and the Rupiah are being blamed. There are strong rumours that China will buy about 700,000 tonnes, which will remove a good portion of surplus stock on the market. Meanwhile, there are attempts to develop and increase production in West Africa.

Patchouli Oil
The recent fluctuations in the Indonesian Rupiah have caused some shippers to raise prices by over 10 per cent. No offers made for Patchouli last month but we do not expect any significant change for the time being.

Rosemary Oil
Prices continue to advance for both Tunisian and Moroccan material, due to limited availability from recent harvests.

Eurocrats Gone Mad!!!
The escalating amounts of legislation generated by the European Union leave you baffled and amazed, assuming you have an indefinite amount of time to read it all. From an essential oil point of view, there seems to be very little of this information reaching the grass roots level, especially aromatherapy. The flavour and fragrance industries seem well aware and prepared to cope with any new legislation in the pipeline but the self appointed body allegedly representing the small aromatherapy industry seems to have its head up its collective ass.

A Customer of ours sent me a clipping from a UK newspaper highlighting why the European Union won't work...

• Pythagoras's Theorem, it calculates, employs 24 words.
• The Lord's Prayer works out at 66 words.
• Archimedes Principle come to 67 words.
• The Gettysburg Address 286 words
• The Declaration of Independence almost 1300 words.
• And the European Commission's regulations for the sale of Cabbages... 26,911 words!