Myristica fragrans Houtt.
Harvest: All Year
The overall situation remains that although supplies are coming through, they are very slow, leaving the spot market firm and the future’s market even firmer.
Collections have been slow for a few months and we are seeing overall supplies dwindle at a time when demand has certainly returned. Today’s situation is a result of the events from the past 18 months, which have seen this product yo-yo in supply and pricing somewhat uncontrollably. Stocks around the world have started to be depleted and as many return to source for new contracts alarm bells have finally started to ring if they hadn’t already.
Given the additional and unexpected rains in the main producing areas during June and July we have seen a period of even fewer collections. Farmers are unable to collect in such conditions and have chosen to leave the fruits on the trees to mature which will later be used for the spice market and not the oil market. Thankfully over the past couple of weeks, the conditions fuelling an almost daily price increase have weakened giving us all a little bit of breathing space to assess the market. It seems we’ve now hit a new price level which could be seen as rm based on the past 12 months or average if you look at the past 24 months! Whilst today the price increases have slowed a closer look at the market would suggest there could be a continued shortage of raw material into the new year with many producers not wishing to commit to any 2017 contracts leaving a few end-users worried about what may happen next. Hopefully a period of calm, but that may be too much to ask for on this one!
Market prices USD 71.00 - 75.00 /kilo