Sesame: Korea Tender Effect on International Prices
September 11, 2017 at 7:09 PM ,
Rainbow Exports
Korean Tender Result as attached :
|
P1 2000 MT (first Tender) |
P2 2000 MT (first tender) |
|
P1 4000MT (second tender) |
P2 3735MT (second tender) |
Total number: 11735 tons.
Registration date: September 11, 2017
Tender: September 11, 2017
Today on 11th it has got award bidding as per attached details.
Award Quantity is mainly to two countries, i.e. India, Pakistan and Nigeria origin Sesame Seeds. The prices are expected to be bided and awarded at higher prices but the it is totally different than expected. Major quantity i.e. about 7000 mt. has gone to Indian origin and suppliers. Balance about 4800 gone to Pakistan and Nigeria origin.
Price are expected from US$1250 to 1300 level but it has awarded at lower prices. Lowest is US$1155 per mt. and upper side on US$1242.88. Which shows that people must have stock on their hand or they are expecting that prices will go down in coming days. Quality for Korean govt. requirements is much more than other normal quality. it is better than sortex quality with less rain damage and less other color seeds as well as less shaft and impurities.
1. Korean Tender Result's implications on the Local market of India
As award prices are much lower than expected which makes and pushes market down in Local market of India. Local market has gone up before award of tender but after realisation that tender quantity total bidding was about 24000 mt., which is more than double of quantity requirements. So supply is more than demand quantities which makes prices to come down in the local market immediately after the tender bidding process completed. Market becomes stable and down after raise of US$150 to 200 per mt. Prices has come down again at the same level. The delivery time for Indian origin cargo is before 20 November which can not be possible with new crop arrival as new crop arrival will starts after 15 November 2017. So who has participated in the tender must have stock on their hand. Due to this reason there will not be demand in the local market. This has made the prices down in the Indian market after completion of bidding process.
2. Korean Tender Result's implication on International Prices
The new season and new crop is going to start with Nigeria and follow with India, Mali, Burkina Faso, Ethiopia, Sudan and other countries. Nigeria season has just started and arrival will make presser on market to go down. Another is that the tender has been awarded to the parties who has ready stock available on hand and ready for shipment. Which will also not affect to the market. Market will further stable and go down and this tender quantity to Nigeria will not affect the market and market prices as it should be.
Over all Tender quantity demand has not much impact on the international prices which was expected that prices will go up due to uncertain demand of Korean Tender. Hope that new crop market will be stable for long term.
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