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As regards the separate varieties of essential oils, the prospects of 

 the new crop of bergamot oil, as already stated in my autumn report, 

 were more favourable than in the preceding year. 



In the course of the summer and the early autumn several producers 

 entered the market as sellers of new oil at about 28 o4t per kilo, but even 

 at these very moderate prices no great desire for buying was shown. The 

 nearer the fruit approached maturity, however, the more it suffered from 

 unfavourable climatic conditions; the usual autumn rains failed, and a 

 continued drought, together with a high temperature, prevented the regular 

 development of the fruit at just the most important stage of its growth; 

 it remained small, and the development of the oil in it left much to be 

 desired. While, on the one hand, the new crop was thus exposed to 

 continued and increasing injury, a brisk demand from abroad brought 

 about an animated business for export in the small quantities of old oil 

 which were still available. This oil was bought up literally to the last 

 drop, at prices which showed a gradual increase until they ultimately 

 reached 34 o4i. Hence, when the new oil appeared upon the market towards 

 the middle of December, no old supplies were available, nothing being 

 left for the export trade except the new material. As a result the latter 

 immediately found eager buyers, and although, as is always the case at 

 the beginning of the crops, its ester content was low, the oil realised the 

 same prices as formerly paid for old oil of high ester content. When the 

 manufacturers discovered that the position of the article was favourable 

 to them, the majority of them retired from the market, intending to drive 

 up the prices by keeping back the supplies of their product. Leaving 

 aside a temporary slight weakening of the quotations to 30,50 &4t at the 

 beginning of January, this policy of the producers has been completely 

 successful. There was not enough oil offering on the market to satisfy 

 the daily demand, and it was therefore necessary to concede higher and 

 higher quotations, in order to induce the manufacturers to agree to the 

 sale of substantial quantities. 



In these circumstances bergamot oil has gradually advanced to a range 

 of prices from 32 c4t up to 35 cfl per kilo according to its ester content, 

 and all the appearances indicate that during the 8 months which still 

 have to elapse before the new crop comes in, it will reach a still higher level. 



The only circumstance which can now moderate a further boom 

 in prices would be an abundant flowering of the trees in the spring. 

 Unfortunately, during the last few weeks severe storms have almost entirely 

 stripped the bergamot trees of their foliage, and although until these storms 

 set in the winter weather had been generally favourable to the development 

 of the bergamot trees, the temperature having been low and rains plentiful, 

 experience shows that when the tree is stripped of its leaves the next 

 crop usually is only moderate, because part of the strength of the tree 

 during the spring goes to the renewal of its foliage. 



