Trends Summary. We expect firm prices for oleoresins of black pepper, ginger and turmeric. Prices should be steady for oleoresins of paprika and celery. We forecast easing prices for  oleoresin capsicum.

Black pepper. Prices for oleoresin black pepper will continue to be firm, at least until the new Indian crop in November. The strong pricing is due to no uncommitted extraction grade berries, a high market for black pepper oil, and firm spice markets. Our early forecast is not to expect any significant price relief with the new crop - not only will the other fundamentals remain, but also pepper plants take three years to bear commercial quantities of berries. Therefore, with the current economic and industry environment, expect black pepper oleoresin at roughly current levels.

Capsicum. An average crop from India and expanding capacity from China means that prices will slowly ease.

Paprika. We are always amazed at the increased investment in oleoresin paprika extraction facilities. Most recently a continuous extraction plant is running in India, and investments are being made to start significant production from Zimbabwe. Prices remain low from these and Chinese origins, while some extractors in the USA and Mexico are either reselling others' production or using old inventory. As a result we see steady prices at current levels.

Celery. Although the new Indian crop has been less than previous years, there remains significant carryforward inventories. These positions will continue to keep prices at current levels at least for the next quarter.

Turmeric. As predicted, prices have risen over the last quarter, and we expect firm prices at current levels at least until spring 99. The reasons are due to a cyclical pattern. We are at the stage where the crop size has been reduced because of unremunerative turmeric price levels. Carryforward positions have been used up, and buyers will not see lower prices unless Indian farmers have a good large crop in the spring of 99.

Ginger. Prices are steady, and will be firm over the next quarter. India had a small crop, and Chinese and Nigerian ginger for extraction is being offered at relatively high prices. There are some carryforward inventories, so we do not expect any rapid increases.

Ecom News. The latest new product out of our laboratory is 'encapsulated' or spray dried oleoresin capsicum. It has the sterility, standardization and long shelf life benefits of oleoresins, but with the dry handling advantages of powders. Please ask us for a sample!

Over the last months we developed a line of  oleoresins which we can certify as free of "genetically modified organisms" - a big topic in Europe. We would be pleased to provide samples upon request.