Palosanto
Palo santo is the common name for wood and steam-distilled essential oil from Bursera graveolens, a tree native to the tropical dry forests of coastal Ecuador and Peru. Commercial product is taken only from naturally fallen branches and heartwood that has rested on the forest floor for several years, never from living or freshly felled trees, since aromatic compounds concentrate as the sapwood decays away. The wood is sold as sticks or chips for direct burning as incense, and the heartwood is steam-distilled into an essential oil used in aromatherapy, perfumery and incense manufacturing. Bursera graveolens is a distinct species from Bulnesia sarmientoi, an unrelated South American tree also marketed as "palo santo" that is CITES Appendix II listed; the two are commonly confused in trade and customs documentation.
Listed palosanto markets
Each line is a grade at a delivery point. Open one for its full specification and terms.
Hedging palosanto
If a move in the palosanto price would hurt you, fix the price now. We agree it today for the months you name, and it holds whatever the market does in between.
| Buying | You use or resell palosanto and need to know your cost. We fix your purchase price for the quantity and months you name. |
|---|---|
| Selling | You grow, produce or hold palosanto and need to know your revenue. We fix your sale price ahead of production or shipment. |
| Settlement | With delivery of the palosanto, or in cash against an agreed reference with nothing moving. |
A price is fixed only once a trader confirms it in writing. Ask the desk for a fixed price.
Caps and floors on palosanto
A fixed price binds both sides. A cap or a floor is a guaranteed price on one side only. You pay a fee up front for it, and it is a right, not an obligation: you use it only if the market moves against you.
| Cap | For buyers. A guaranteed maximum price for palosanto. If the market is above the cap when you buy, you pay the cap and we cover the difference. If it is below, you buy at the market price and let the cap lapse. |
|---|---|
| Floor | For sellers. A guaranteed minimum price for palosanto. If the market is below the floor when you sell, you receive the floor and we cover the difference. If it is above, you sell at the market price and let the floor lapse. |
| Fee | Agreed and paid up front. It is the whole cost of the protection, and it is not refunded if the cap or floor goes unused. |
A cap or a floor is in place only once a trader confirms it in writing. Ask the desk for a cap or a floor.
Grades
No codified international grade exists for either the raw wood or the oil. Wood is assessed on rest time on the forest floor, heartwood-to-sapwood ratio, and moisture content. The oil is assessed by an independent GC/MS assay confirming a limonene-dominant chemotype consistent with authentic Bursera graveolens, since the oil is easily adulterated with cheaper synthetic limonene or blended/substituted with oil from other Bursera species or with Bulnesia sarmientoi oil marketed under the same common name.
GC/MS chemotype and adulteration screen
2 grades
| Grade | Definition |
|---|---|
| PASSConfirmed authentic profile | Limonene-dominant monoterpene profile consistent with the published Bursera graveolens reference range, no synthetic-limonene or foreign-species markers detected |
| FAILAdulterated or substituted | Profile inconsistent with the reference range, indicating synthetic cutting, species substitution or admixture with a different aromatic wood oil |
Wood rest-time and moisture grading
2 grades
| Grade | Definition |
|---|---|
| AGEDFully rested heartwood | Minimum four years natural rest on the forest floor, heartwood only, moisture percentage confirmed by an independent check on the specific lot |
| GREENUnder-rested wood | Less than the minimum rest period, lower aromatic concentration, trades at a discount |
Grades outside this list, including a specified essential-oil yield percentage or a mixed heartwood/sapwood lot, trade on request.
Locations
| Country | Region | We trade it as |
|---|---|---|
| Ecuador | Manabi Province (coastal dry forest, Puerto Lopez / Machalilla area) | Origin |
| Ecuador | Loja Province (Zapotillo canton, Ecuador-Peru border dry forest) | Origin |
| Peru | Piura and Tumbes regions | Origin |
| United States | National | Destination |
| Canada | National | Destination |
| Germany | National | Destination |
| United Kingdom | National | Destination |
Origins and destinations outside this list trade on request.
Timing
Palo santo is not seasonally harvested in the way a crop is: naturally fallen wood is collected year-round as it becomes available and only used once it has rested on the forest floor for the required period, so there is no annual harvest window. Arrival timing at destination depends on collection, distillation and export clearance scheduling rather than a fixed season.
HarvestArrival
| Origin | J | F | M | A | M | J | J | A | S | O | N | D | Window |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ecuador | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest and arrival | Harvest Jan to Dec, arrival Jan to DecYear-round naturally-fallen-wood collection, not a fixed crop season; must-verify against a specific supplier's current lot availability |
Timing outside this year-round collection pattern trades on request.
Common questions
What grades of palosanto does SIP Global trade?
We quote 4 published grades of palosanto, including PASS - Confirmed authentic profile, FAIL - Adulterated or substituted, AGED - Fully rested heartwood and GREEN - Under-rested wood. Every grade is tied to a delivery point and a settlement route. Grades outside the published list are priced on request.
How is palosanto graded?
No codified international grade exists for either the raw wood or the oil. Wood is assessed on rest time on the forest floor, heartwood-to-sapwood ratio, and moisture content. The oil is assessed by an independent GC/MS assay confirming a limonene-dominant chemotype consistent with authentic Bursera graveolens, since the oil is easily adulterated with cheaper synthetic limonene or blended/substituted with oil from other Bursera species or with Bulnesia sarmientoi oil marketed under the same common name. Grading runs on 2 systems: GC/MS chemotype and adulteration screen and Wood rest-time and moisture grading.
Where does SIP Global trade palosanto?
We trade palosanto in Ecuador, Ecuador, Peru, United States, Canada, Germany and United Kingdom. Origins and destinations outside this list trade on request. We are not limited to the locations shown.
When is palosanto harvested and when does it arrive?
Typical windows are Ecuador: harvest jan to dec, arrival jan to dec. Harvest is when the lot is taken at origin, arrival is when a shipment from that origin lands in a consuming market. Windows outside this pattern, including carry, trade on request.
Can I hedge palosanto prices?
Yes. SIP Global fixes a palosanto price ahead for buyers and for sellers, which is what a hedge, or a price guarantee, comes down to. Send the grade, the quantity and the months you need covered. We settle with delivery or in cash, and a price is fixed only once a trader confirms it in writing.
How do I get a price for palosanto?
Send the grade, the origin and the delivery window to the SIP Global desk. That is enough for a trader to come back with a level and a settlement route. 4 listed palosanto markets are published on this page, each with its full specification and terms. We take both sides, physical and financial, prompt to long dated.
Standards and data sources
The grading language on this sheet follows published standards. Trade volumes and tariff lines are public record. Verify anything here against the source.
- CITES (opens in new tab)Convention on International Trade in Endangered Species
- UN Comtrade (opens in new tab)Official international trade statistics by HS code
- ITC Trade Map (opens in new tab)Bilateral trade flows and tariff data
- FAOSTAT (opens in new tab)FAO production and trade series for agricultural commodities
Price this with our desk
Grade, origin and window if you have them. If what you are carrying does not fit the sheet above, describe it in your own words and a trader will take it from there.