Rob’s Crystal Ball
An Oleoresin Market Report
Trilogy’s strong position in Capsicum Oleoresins allow us to offer customers a range of heats and colors. The current 2019 crop has been healthy and stable. However, current reports suggest weather in India may be negatively impacting the crop. Additionally, India’s farmers have been incentivized to plant other crops – particularly maize & cotton. The changeover has decreased the acreage dedicated to chili, setting the stage for upward price pressure next season for delivery through the first half of 2020.
Last year’s turbulence in China is not expected to continue. Reports from India indicate the crop is likely to be comparable to last year. Prices in 2018 remained stable as decreased yields in China were compensated by India’s output. So far in 2019, the supply appears stable. We suggest continuing to cover in small amounts and checking in frequently for updates!
Black Pepper Oleoresin
Black Pepper Oleoresins remain tricky to price. Last year saw historically low prices for this must have spice. Supply in all major producing regions – including Sri Lanka’s high quality extraction variety – is expected to be robust. December marks one of two annual harvests for black pepper. A better picture of the market is to be had closer to the end of 2019. That said, prices are so soft meaning deals are to be had for those seeking to cover significant volumes.
Black Pepper Oil
Black Pepper Oil prices remain comparable to last year. We have maintained a special position in black pepper oil. Please inquire with your needs.
The ginger planting season has been completed. Total planted area increased in the Rajakumari region of India from prior year. The crops have overcome a lack of early rain & look healthy after achieving six months of growth. Though heavy rains may undo the crop in the last half of the growing cycle, India’s supply is likely to be the main source of ginger oil for global demand as Nigeria’s crop does not look promising.
As predicted previously, farmers have focused their attention on other crops during the busy harvest season. In the short-term celery’s availability is expected to continue.
Nutmeg & Mace Oleoresin
The Nutmeg market has been remarkably dynamic this year. Supplies from Indonesia – the world’s largest supplier – and India have been strong. However, global demand for this spice is growing rapidly. Demand has outpaced supply, leading to a run up of pricing. We expect prices to continue to move upward.
Turmeric market tends to trade in a normal range. However, decreased rain in the main growing area, and too much rain in other areas has curbed supply. Farmers too have appeared to have lost interest in Turmeric, as planting in Southern India is down. Turmeric prices have trended downward for the past two years. Our sources believe this trend will end in the coming season.
Cassia oleoresin prices have moved up drastically in the past twelve months. Unfortunately, our sources are not relaying much positive news. Harvests are down and the maturity of the Cassia trees skews to the young side. Meaning available supply is constrained.