Vigoninternational
November/2011
What's Happening in the Market Today?

Geranium China   

After a poor 2010 crop, China is now reporting a 2011 crop yielding 20-30% more oil than last year with no carryover inventory.  The big picture perspective is that supply is foreseen to more closely meet demand. However, improved availability is being met with only limited price relief.

 

Geranium Egypt    

Egypt is an alternate source to China. The quality is different however, as the Egyptian oil has much more citronellol than geraniol, whereas the Chinese oil has a citronellol/geraniol ratio that is more balanced. The Summer 2011 crop went very well, and helped bring 2010 sky-high prices down to more sustainable levels.  Geranium Egypt represents a good value again, now 20-30% cheaper than the Chinese oil.


Nutmeg      

Supply of the essential oil remains short.  The spice industry has unprecedented strong demand for nutmeg. This severely impacts the availability of the raw material to the distillers.  Shortages in Sumatra also compound the situation.  Prices are very firm.