The dry fruits are known as coriander seeds. Coriander is famous worldwide as a spice in many foods as well as beverages.
India is the largest producer but also a large importer to supplement their large domestic requirements. Over recent years the increased demand for seeds has meant less has been further processed into oil. The global seed prices have increased significantly in recent times ensuring the oil prices follow.
Coriander essential oil consists of compounds like Borneol, Cineole, Cymene, Dipentene, Linalool, Phellandrene, Pinene, Terpineol and Terpinolene, and these are all attributes that contribute to its place in the healthcare markets.
Some health benefits of coriander essential oil can be attributed to its properties as an analgesic, aphrodisiac, antispasmodic, carminative, depurative, deodorant, digestive, fungicidal, lipolytic, stimulant and stomachic substance.
We started 2017 with some of the lowest oil prices seen for 10 years – a stark contrast to recent times. It’s almost impossible to justify these prices as given the maths they appear unsustainable and this may be a factor as we head into 2018.
These low prices are a result of surplus seeds stocks existing as we approached the last winter period so farmers and collectors were keen to offload them, almost at any price. This gave the processors a chance to produce cheaper oil but at the same time take a risk, as market demand was also weak.
Seeds don’t store well but oil can be stored without too many concerns, so in some ways it made economic sense to produce stock even given the weak demand. However, it may have set an unhealthily expectation with buyers who will be expecting more of the same going forward.
However, this may not be the case as every season is different and demand from the spice market appears to be returning, giving farmers a welcome boost and processors a new challenge, as they may need to pay that little bit more for their seeds!
Some had speculated that growing areas across Russia had reduced in 2017. This was not the case, as the growing areas actually increased, but it will be the case in 2018 (we assume it was just misreported by some). We expect to see as much as a 30-40% reduction in the growing areas in 2018 and therefore expect the price of the seeds to increase, which will have a direct impact on oil prices.
It is understood that there is plenty of oil in the pipeline to see us through winter as all production has now stopped but it is expected to be consumed by the time the 2018 season arrives. Therefore, when it does, we may be left with a whole new set of variables to work with – no carry over seeds, smaller crop, higher prices etc. so it may be worth looking at your stocks and buying healthily in the first half of 2018.
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