Sesame: Will market continues to Go down................ !!!

NIGERIA:

Exchange rate is stable. Season is getting over and due to that less arrival in the market. New season of other alternative crop has started so all traders, exporters have moved to the other commodities. FOB Market level is about US$1275 TO 1300 For White sesame Seeds. International market coming down.

ETHIOPIA:

Sesame seeds on ECX are little bit lower and weaker in regular quality due to no demand from china as well as other countries. The trading volume was increased and the average closing prices trend is stable.

According to the Ethiopia customs, from December 10,2017 to January 11,2018,the exportation quantity from Ethiopia to China is about 550,000 tons only within one month, covering 70% of the total exportation in Ethiopia. That is to say, there will be about 550,000 tons sesame to China in January-February,2018. This also proves why the domestic sesame price at China port didn’t follow with the overseas price to be increased, but to reduced.

SUDAN:

According to what we know from Sudan, there are 50 bigger exporters to collect the goods in the local market, including the Marwick, Elephant, Olam, ETG and so on. Since January 1st,2018, the customs declare fees in the bank will be adjusted to 1,200USD from the 800USD.The exportation cost will be increased. The current FOB Market price for Non Gadarif white sesame 1330 per mt. Red Sesame is US$1130 for Gadari prices is US$1350. We have attached some of the news article which published in the News paper of Sudan.

BURKINA FASO:

Price is up in the local market. Exchange rate is also stable of this year. This is end of the season; cargo arrival is very less in the market. Current market level is US$ 1310 TO US$ 1330.The current market is little down due to no demand from international market.

TOGO / MALI:

Prices are up in the local market. Exchange rate is also very low of this year. This is end of the season; cargo arrival is very less in the market.  Current Market level is about US$1310 and for mix is 1280 per mt.

UGANDA:

Prices are stable and little down in the local market. This is end of the season; cargo arrival is very less in the market.  Current Market level is about US$1310.

MOZAMBIQUE/TANZANIA:

NO SEASON

SOMALIA:

Prices are stable and not much movement as there is less crop this year too.

BANGLADESH:

Price is stable in local market. Exchange rate is also stable in last few days. Current market of Red Double Husk Sesame is US$800, White Sesame Tiny Small Sesame US$ 1,330 Black Double Husk Sesame US$ 900.

INDIA:

Exchange rate is good and favorable for exports recently and increased. Dollar get stronger and local currency get weaker, gives benefit to exporters. Local market down due there is no local demand and there  is no overseas demand.

There is the news for the Korean Tender which will makes market stable or down or up that time will decide once actual annoucement will be there for the Korean Tender notice for the bidding.

CHINA MARKET:

According to what we know, in Henan and Hubei Province, because of the continuous rain in the early period, it will be bad for the drying of the new sesame in time. It may lead some sesame become yellow. Its look will not be as good as last year. The loading price of the domestic oily sesame is at 10,400--10,900RMB/T. The sales is just so so .

According to what we got from the port, it sells about 2,240 tons of goods at Huangdao Port. Because the Spring Festival is coming. The people and the trucks are reduced clearly compared with that before. The logistic company begins to have the holiday gradually. It is estimated that the sales quantity at the port next week will be reduced gradually. The quantity of the arrived goods is increased at the port. And the inventory is increased. The price of sesame is reduced. More Chinese importers buy the future goods. Most of the goods, which arrive to the port from the end of January to the beginning of February, are the future goods. So most of the Chinese traders think that even though the sales quantity is increased, the price of the stock goods is difficult to be increased much. Because most of the traders need sell their future goods and try to change the goods into the money with benefit. The quotation at the port is very messy. The price depends on the quality. The new goods with good quality has a better price. On the contrary, the price is lower. Some companies sell the good with a lower price with the advertisement that they want to get the recoup the funds or sell the inventory so that the goods can be sold out quickly. By this, we can see that the arrival goods really are too much. Most of the businessmen want to block the benefit.  China Port stock increased from 40000 Mt. to 80000mt. and it will be expected that after Chines New year stock will increasae further more than 100000 Mt.

According to what I know, generally, since February, most of the logistic company will stop the transportation. And the market at the port will be lighter. Most of the plants will begin with the production after March 2nd.During such time, the consumption will become less. Mostly it will be the goods, which comes to the Port. So there can’t be a big fluctuation about the sesame market before March. Even the importers will reduce the price for sale quickly because of the more arrived goods to the port.

Personal View:

Market will go down for next coming week due China market will be closed for next 15 days and it will be reopen after two weeks. If there will be sudden demand which can pool market up or stop going down. Overall market is down by 20 to 30 Dollars. Market is bearish trend.