Market News    Coriander Seed Oil - 21st Nov 2006

There is a severe crop shortage in the main growing regions of Ukraine and the Crimean region of Russia. We have been hearing reports of shortages for some months that have driven up the price on the spice market, but recently the big regional distillers of oil have been unable to secure supplies to keep their distillation plants going. There have been stories of distillers buying back oil from the market to fulfil their contractual obligations.

The market price for Coriander Seed Oil has been relatively weak for a few years. Only the serious distillers have survived the upheaval caused by the disintegration of the Soviet block. Excess capacity of the centralised production system has gone. Gone with it too is any surplus of Coriander Seed Oil. In this leaner market the price will more clearly reflect the supply and demand situations. Price has escalated +15% on this news, but where will this be going? Next crop is June/July 2007.

Nov 2006