Sesame Seeds Market Report – November 02, 2010

//Sesame Seeds Market Report – November 02, 2010

Sesame Seeds Market Report – November 02, 2010

We all are aware of the shocks & surprises “Sesame Seeds” is capable of giving. This new crop year was also no different with very high volatility at the start of the season which kept everyone confused about the prices as well as their buying & selling strategies for the coming months.

This year, many importers were looking for news about the New Crop in India, especially in the backdrop of the news that China crop was in deficit of at least 30%.

Even though the export demand for Indian natural sesame seeds has gone down in the last 2 years; India is still one of the major producer & exporter of Sesame seeds in the world, offering a quality product at very competitive prices, especially for Hulled sesame seeds.

Indian Sesame Seeds: The New Crop Story

The harvest had started 20 days ago but the arrivals increased only in last 10-12 days. The product quality is much better than the last year & good quantities of 98×2 and 99×1 type cargo can be available this year. The hullers will have better quality raw material for processing which will result in good quality finished product i.e. Hulled Sesame seeds.

There was lot of rumors about rains in many growing areas, and thus, everyone was confused about the production figures for the New Crop. Though it is not possible to accurately settle down to any exact figure, the information available from various sources suggest that the Indian crop should be around 300,000 to 315, 000 tons. This is not an impressive figure but it is better than last years’ sesame seed production.

IOPEPC, Mumbai carried out a survey with their own people, and estimated the crop size at around 375, 000 to 400,000 tons. In reality, most of the Indian exporters, traders & farmers that we have spoken to, do not agree with these figures. The reason we have mentioned this is because we want everyone to know the developments taking place related to sesame seeds.

The farmers are hesitant to sell at lower prices & accordingly adjust their arrivals in the markets. The arrivals will be slow in coming days due to “Diwali festival” during early November. The markets are closed during this time & people are in holiday mood.

International Market:

  • The African prices of Natural sesame seeds are very firm & are quoted above USD 1450 PMT FOB level for Sudanese & Ethiopian natural white sesame seeds.
  • The new crop in Africa will be harvested by end of November & prices of this new crop are not expected below USD 1350-1400 PMT FOB.
  • The crop in China, which is one of the largest consumer of sesame seeds in the world is down by minimum 30%, thus, they will require around 350,000 – 400,000 tons (they import around 250,000 to 275,000 tons in normal course & about 125,000 – 150,000 tons on account of crop deficit this year).
  • From the data available, China prefers to buy about 70-80% of its requirement from Ethiopia. Thus, if we assume that China would continue this buying pattern, the prices of African origin seeds should remain firm.
  • It has been noticed that in the past few years that demand for African product is increasing due to various other factors, which has created markets for even small African origins & their prices have firmed up.
  • If prices of the largest producing country “Africa” (considering Africa as a single country) are expected to remain firm; then even India, which too is also one of the largest producer of Sesame, should continue to have firm prices, too.
  • The “Korean Tender” requirement is another important factor which can further support the Indian market. It expected that India will have very good chances of winning the Tender henceforth due to good quality & competitive prices compared to African origin.
  • There are absolutely no carry forward stocks at most of the origins, thus, only the new crop can offer some support.
  • All the buyers are covered hand to mouth & would require goods for November/ December & onwards, thus, there will be good demand.
  • If China comes into the market to cover-up their requirement, then the market may get support & prices may suddenly go up.
  • While we cannot comment on the China’s timing to start buying, the latest news available with us is that the Chinese are in market for fairly good volumes. But due to change in trading mechanism in Ethiopia, (they have made it mandatory to deal all the Sesame seeds trade through centralized commodity exchange) not many major contracts are concluded. It is expected that in about 10-12 days’ time, the exact mechanism will be finalized in Ethiopia.
  • India is the largest producer & exporter of Quality hulled sesame seeds at a very competitive price. At present, there is exceptionally high demand for good quality & as a result, a scarcity/ spot shortage of the same, but we expect the situation to normalize in next 3-4 weeks’ time.
  • At present price levels of USD 1750 – 1850 PMT FOB, there are good & firm enquires for near term shipment for next 3-4 months.

Conclusion:

We expect the market to remain firm & steady. We don’t expect the market to get bearish, but nor do we anticipate too much bullishness as it would slow down demand.

As usual, currency fluctuation is a vital influencing factor.

Amrut Bora,

Bora Agro Foods,
Pune, India.

By | 2010-11-03T13:15:33+00:00 November 3rd, 2010|Sesame Market Reports|29 Comments

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29 Comments

  1. Rakesh gupta November 9, 2010 at 3:35 am

    Good report sir . Any latest news about market. Plz mail me.

  2. amrith November 16, 2010 at 12:33 am

    if there is anyone from Mali or Burkina – We would share info

    • Girish November 25, 2010 at 9:59 am

      i operate from nagpur, india
      …….girish…….

  3. sachin kumar jindal November 17, 2010 at 2:48 pm

    Dear Sir,

    Very good report. My dad is says that if dussehra festival of friday, pricemust be high of sesame seed. this time dussera on friday. out expecetation is that once again the prize is 90000 per ton. the same is possible. 3 & 4 years ago when seasame seed sold at rs 95 per kg whrn also dussehra on friday.

    Sachin Jindal
    9968048562

    • Girish November 18, 2010 at 6:09 pm

      Awesome report

      But what about the position of crops from african countries like ethiopia and when will china start buying????

      • amrith November 19, 2010 at 6:59 pm

        Hi Girish – Where do you operate from ?

  4. sachin kumar jindal November 19, 2010 at 3:43 pm

    Dear Friends,

    I am really sorry for my above comments in above comments when dussehra on sunday when price high in future of sesame seed. i mistakely write it friday.

    Thanks a lot,
    Sachin Jindal
    9968048562

  5. Gaurang Pandya November 20, 2010 at 3:31 pm

    Very informative Report.

    All are appreciating your Reports.

    Do you operate any plant in African Countries?

    Regards,
    Gaurang Pandya
    Intl. Trade Mgr.
    Mob.: +91 98259 16456
    Email: [email protected]

  6. abdurahman M November 22, 2010 at 5:11 pm

    Very informative report! am an Ethiopian, working as Business Analyst at the Ethiopia Commodity Exchange (ECX). If anyone needs market information on Sesame, coffee, etc.. please contact.

    Abdurahman M

    Buisness Development Analyst

    Ethiopia Commodity Exchange
    E-Mail: [email protected]

    • Rutuparna Dole November 23, 2010 at 3:50 pm

      Dear Mr Abdurahman,

      Please let us know the new crop size. The results of sesame seeds being traded through ECX. When do you think china may start buying from you & what price range do you think would previal in coming days.

      Regards,

      Rutuparna Dole

    • Rutuparna Dole November 26, 2010 at 8:25 am

      Dear Mr Abdurahman,

      Please let us know the new crop size. The results of sesame seeds being traded through ECX. When do you think china may start buying from you & what price range do you think would previal in coming days.

      Regards,

      Rutuparna Dole, Bora Agro Foods

    • suresh parmar January 4, 2011 at 4:01 pm

      can you advise how to convert the ECX PRICE OF SESAME SEEDS IN BIRR TO FOB PRICE IN USD.
      regards
      suresh parmar
      MAMTA COMMODITIES PVT LTD.

      • abdurahman M January 4, 2011 at 8:49 pm

        Dear Sir:

        You cannot directly convert ECX sesame seeds trade price from BIRR into FOB USD. Because sesame seeds traded at ECX is unprocessed. So the exporter normally adds all processing costs( cleaning, transportation, transit,PP bags…etc) to purchase prices and offers in FOB USD. N.B all sesame prices in ECX are quoted in Quintal, so you have to convert it in ton. Then divide the total price by exchange rate (1 ETB= USD 16.60). u can get the daily exchnage rate at http://www.nbe.gov.et

  7. elastic December 15, 2010 at 12:08 pm

    i just read your market focast but the present situation of africa market dues not correspond with the focast. Africa market is dropping

  8. BR V December 16, 2010 at 4:20 pm

    Dear Amrit Bora

    Hope everything is going well. Despite low crop of sesame seeds there is no movement in price. what may be the reason. what is forecast?

    Thanks

  9. Sohan Kandari December 21, 2010 at 4:11 pm

    Nigeria had a bumper crop of 150,000 MT.so the China is buying agressively from Nigeria;
    Thats why Burkina faso crop the price is abt 1145 USD fob.where as local price is high and people are procuring at 1170 Usd level;

    • BR V January 3, 2011 at 8:42 pm

      thnx
      is there any report that india may win any tender……
      can indian market be bullish in future………time period?????/

    • Samuel D Kouame March 29, 2011 at 10:55 pm

      Sohan, I will be glad to speak with you about selling some Burkina and Mali Black and brown sesame seeds

      Samuel
      [email protected]

      • Samuel D Kouame March 29, 2011 at 11:07 pm

        My mistake I meant to write white and brown sesame seeds from Burkina faso

  10. suresh parmar January 4, 2011 at 4:20 pm

    CAN’T COMMENT WHEN PRICE WILL RISE.BUT, CAN SAY ,IT SEEMS MARKET HAS BOTTOM OUT IN SESAME SEEDS.

  11. Rajkumar Mittal January 23, 2011 at 6:12 pm

    Hello everyone,
    No doubt its a pretty good report provided by Mr. bora and it could be helpful for many.
    I am from rajasthan and crop size here in our area is relly good this,3 months had already passes from the time of harvesting still there is arrival of 3000+ bags of sesame every day in kota mandi.As i had asked with some farmers,still a large stock had to come,as now a days farmers are capable to hold,they are waiting for prices to rise high once again.

    • BR V January 25, 2011 at 9:51 pm

      Dear Rajkumar Ji

      I would like to know name of your firm. you r a trader of commission agent ( aartia )

      • BR V January 25, 2011 at 9:54 pm

        sorry sir

        there is trader OR commission agent (aartia)

  12. yyouus January 25, 2011 at 11:24 am

    Does anyone know the rough figure of the total African countries production? Thanks

  13. Ahmad Tamim Sediqi February 23, 2011 at 4:25 pm

    Dear Traders,
    We need the real price of sesame seeds in India Market per ton or 1000kg?
    Now India has sesame export to which countries?
    How much sesame export from India in which quantity?
    Best regards

    Ahmad Tamim Sediqi

  14. J.S Trading, West Africa , Mr. Stanly February 8, 2012 at 3:56 pm

    Dear sir,

    We have White sesame Seeds for Export, If you know any Intrested part to Buy in Internation Market Can you Let us Know.

  15. J.S Trading, West Africa , Mr. Stanly February 8, 2012 at 3:59 pm

    We have White Sesame , Any Buyer Like to Buy, We can supply Large Quandity per Month For coming 2 month.

    With Regard

    D.Stanly

    • Muhamnet umran February 27, 2012 at 6:59 pm

      Hi
      We deal in sesame in Syria, Iraq and Turkey. We need to buy sesame bulk quantities from Africa and India. Kindly quote us prices at [email protected]

  16. pankaj pankhaniya June 19, 2012 at 2:51 pm

    Good report dear,
    am from mozambique, our new crope is on the door so any inquiry plz feel free, we r looking forward to export this year.

Comments are closed.