Herbs & Spices

ANISEED

FIRM

In the main production region of Guangxi, an October typhoon severely interrupted operations. This has led to a shortfall in output and the producers are witholding supplies in expectation of higher prices later.

BASIL

FIRM

Predictably the market price increased last season, approximately +25%.

BAY

STEADY

Continuing stability in the market for WI Bay Oil.

BUCHU

WEAK

No change in a weak market.

CAPSICUM/CHILLIES

FIRM

Andhra Pradesh which is the main area for cultivation of Chillies in India has recently reported heavy rainfall. The extent of damage has still to be assessed. As reported last quarter, the area planted for new crop is reduced by 15-20% when compared to last year, but the crop is delayed due to continuous monsoon rain. There is sufficient carryover stock which will meet demand until the new crop due for harvest in February 2011. In the meantime, reports of a -65% reduction in output of the smaller Madhya Pradesh crop, which is currently being harvested, has alarmed the market, increasing prices by some +15%.

CARAWAY

FIRM

A firm market

CARDAMOM

FIRM

Guatamalan Cardamom prices have risen again after reports of a much smaller crop, which has cancelled out claims that it might exceed of 2009. Indian arrivals are coming into the auction centres and prices are holding up in a very bullish market. The commodity is so lucrative that there has been reports recently of smuggling from West Bengal to Pakistan.

CASSIA

FIRM

Cassia prices from all the major origins are showing renewed strength as the ongoing effects of a lack of raw material tightened their grip on the market. Recent quotations are +50% higher than last year.

CELERY HERB

STEADY

No change to report in the general market situation.

CELERY SEED

FIRM

The overall market situation is stable as the main 2011 crop is sown during the months of December and January. It is expected that the area under cultivation will be reduced as farmers are seeing returns from Celery are unattractive compared with cash crops such as wheat and cotton.

CHAMOMILE

STEADY

Stable prices as reported last quarter.

CINNAMON LEAF

STEADY

Stable prices as reported last quarter.

CINNAMON BARK

STEADY

Stable prices as reported last quarter.

CLOVES

FIRM

The availability of Cloves is tighter than ever and prices remain very firm. The Indonesian harvest is insufficient to meet local demand. In Madagascar prices have moved sharply higher in recent weeks despite the arrival of a good crop due to local speculators hoarding stocks. There is no leaf oil being produced in Madagascar as they focus on trading the whole spice to the culinary market. The price of Clove Oil derivatives such as Eugenol has jumped alarmingly by as much as +400%.

CORIANDER LEAF

FIRM

The market is slightly firmer as supply and demand move out of kilter.

CORIANDER SEED

FIRM

Coriander Seed Oil prices remain high following the August 2010 drought in Russia. Carryover stock from 2009 is limited and buyers have a problem to find cover for the long wait until the new crop starts in September 2011.

CUMIN

FIRM

Prospects of a return to some stability in the market have received a setback as Indian cumin seed prices have surged higher due to untimely rains and sharp reduction in the area planted for the Feb/March crop.

DILL SEED

FIRM

India and Eastern Europe are reported to have had short crops.

DILL WEED

FIRM

The market remains firm with regular demand, but dwindling supplies. There is still insufficient incentive for farmers to increase their acreage planted.

FENNEL

STEADY

No change in the overall market situation.

FENUGREEK

STEADY

No change in the overall market situation.

GARLIC

FIRM

Continuing from our previous report the global shortage of Garlic prevails. There has been a temporary respite in the inexorable rise in the price of Chinese Garlic Oil, but it will be a long time to wait for the next crop in June 2011. In India, arrival of the March crop may have a bearing.

GINGER CHINESE

FIRM

We predicted correctly that the October crop would not be sufficient to cover domestic consumption, which means that the imminent crops from other major origins will be needed to meet the shortfall in demand in China. Buyers lucky enough to find any Chinese Ginger are paying about double that of a year ago, but the likelyhood is that it is from the same 2009 crop.

GINGER OTHER

FIRM

New crops about to arrive from Nigeria and India are not expected to downwardly influence the market. The massive shortfall in China will underpin the current all time high prices which, like Chinese, are double last years.

JUNIPER

FIRM

This year's crop of Juniper Berries from the Tyrol is very short.

LAUREL

STEADY

The recent crop is more than adequate to meet the prevailing demand situation.

LEMONGRASS

STEADY

No change in the overall market situation.

LITSEA CUBEBA

FIRM

The situation prevailing after the short September crop is higher prices and poor quality. It not possible this season to source the highest purity of oil as produced in 2009, so Citral prices will rise in proportion to the loss of yield to achieve the desired specification.

LOVAGE

FIRM

This is now a firm market as reported in the previous quarter. Polish farmers have reduced the area under cultivation, and this years crop was damaged by adverse weather. Prices have risen, and it is envisaged that there will be further increases next season.

MACE

FIRM

The price of Mace has reached staggering levels approaching 3 times what it was a year ago!

MARJORAM

STEADY

There is no change to the situation we reported last quarter. The market remains steady, and demand is strong.

NUTMEG

FIRM

Can this market go any higher? Apparently the answer is yes. There is no carryover stock from any origin, and early reports are that 2011 crops will be diminished by prolonged monsoon rains. There are real worries concerning the lack of availability of BWP extraction grade material in India, and there is pessimism about the valuable Sri Lankan crop due in January.

ONION

STEADY

Little change since last quarter. Prices are up slightly.

OREGANO

STEADY

This years crop was good. Supplies are abundant and demand is strong.

PAPRIKA

FIRM

The predicted increase in output from the October crop in China did not transpire, and it turned out to be lower than 2009. The Indian Karnataka crop, which was reduced by about -15% for economic reasons, has been damaged by the same prolonged rains affecting other crops, but we will have to wait until the main harvest in February/March to determine how the market price settles out. In the meantime, the price will stay high.

PARSLEY HERB

STEADY

Stable market.

PARSLEY SEED

STEADY

Stable market.

PEPPER BLACK

FIRM

Harvesting of the Indian crop has been delayed due to unseasonal rains. Prolonged rain at this time of year will reduce yield as increased incidence of disease occurs. Importantly for the extactors of oleoresin, the favoured immature light berries cannot be harvested, with rains also badly affecting the valued crop of Sri Lankan Lights. There remains little carryover stock from other origins, and the only thing restraining upward price movement is temporary weak demand.

PEPPER WHITE

FIRM

Market prices remain firm, but, like Black Pepper at present, demand is somewhat weak.

PEPPERMINT

FIRM

Although we previously reported a firming tendency due to speculator hoarding, we did not imagine the extent to which the market price for Arvensis Mentha Oil and its derivatives would rise. The price has more than doubled. This is unprecedented since the introduction of the MCX exchange which was established to mitigate such dramatic events. The US Piperita market is also firm.

PIMENTO

FIRM

Pimento prices are increasing rapidly because of short supply from the 2010 crop. The situation is made worse because there is no carryover from 2009, and there is little on deposit in normally reliable EU warehouses. It is likely that buyers may have to pay record prices before the next crop in August 2011.

ROSEMARY

STEADY

Nothing significant to report about a stable market.

SAGE

FIRM

The price for Dalmatian Sage has, predictably, increased again this year. Normal economic laws dictate where there continues to be real estate competition in the growing regions of Albania and Montenegro.

SAVORY

STEADY

Nothing significant to report about a stable market.

SPEARMINT

FIRM

Spearmint prices are firmer as areas under cultivation have been reduced.

TARRAGON

STEADY

Nothing significant to report about a stable market.

THYME

STEADY

Nothing significant to report about a stable market.

TURMERIC

FIRM

A new crop will be due in India by February. It is hoped that this will alleviate the chronic shortage on the market. Extractors need the Indian grown Alleppey Finger to maintain colour parameters. Lately buyers have had to compromise on quality being sourced from other origins.

VANILLA

FIRM

The Indian crop has reduced in the past 3 years from 400 to 140 tonnes due to declining production and fusarium disease. Farmers have not maintained their plantations as low income made it uneconomic. Consequently prices have started to increase.