Sesame Seeds: Confused Market

Sesame Seeds Market Report

INDIA:

Exchange rate is good and favorable for exports recently and increased about 5%. Dollar get stronger and local currency get weaker, gives benefit to exporters.  Local market up due there is local demand and also quality for making hulled sesame seeds.

There is news that there will be 4000Mt. Korean government tender will be announced this week which will gives little boost too the local market to be stable and little up in this week.

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. There is port concessions and due to that the shipment get delayed in December and January. FOB Market level is about US$1300 to 1320.

According to the recent news from Nigeria, threatened by the Nigeria Marine Workers Union, the Worker Union sent the ultimatum for 7 days to require the government to remove the abandoned trucks on the Oshodi---Apapa highway to Apapa Port and Tincan Port and fill up the hole on the road to assure the safety and no traffic. Otherwise, all of the workers at the wharf will strike without time limitation since February 6th, 2018. According to the report, if all of the workers strike, Nigeria will face the lost about 300 millions Dollars every day. If the workers begin to strike, it may effect on the sesame local transportation in Nigeria.

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 to be increased. Ethiopia first grade white sesame is at 1,420USD. Ethiopia Now the overseas sesame price is higher. But the domestic price is lower. The main reason is that the overseas price is down too quickly. But the domestic customers still can’t accept such lower price.

According to ECX (Ethiopia Electronic Trading Platform), from October 27 to February 5, 2018,  it traded about 171,855 tons of new season 2017/2018 sesame in total. On February 5, 2017, it traded about 1,160 tons of sesame in total, averaging 1,535.52 USD/MT, in which WOLLGA 235 tons, at the price of FOB 1,496.49USD/MT; HUMERA 895 tons, at the price of FOB 1,566.92USD/MT and red sesame 30 tons, at the price of FOB 1,384.46USD/MT and mostly is the HUMERA white sesame. The trading volume was increased and the average closing prices trend to be reduced.

SUDAN

Exchange rate is unstable. The prices are unstable due to exchange rate. The exportation cost will be increased. According to the recent news from the Sudan Central Bank, there is some change about the Sudan exchange rate policy.  Government is trying to control the exchange rate but could not able to control which has make havoc in the market. There are lot many shipments under process but government is changing the policy day to day and which are making confusion in the market. All exporters are not willing to take any further order even though they are getting enough profit as they are thinking that exchange rate can change any time due to the government policy. Government can impose any time any regulation which makes problems for all the exporters. During November the Exchange rate was US$1= SDG21.5 which has gone up to SDG45 per dollar, which is almost double in last 3 months. Even local market has gone from SDG21000 per mt. to SDG46000 per mt.

The current FOB Market price for Non Gadarif white sesame 1330 to 1350 per mt. Red Sesame is US$1150 for Gadari prices is US$1350 to 1370.

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$ 1330 TO US$ 1350.

TOGO / MILI

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$1350.

UGDANGA:

Prices are stable 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$1330.

MOZAMBIQUE/TANZANIA:

NO SEASON

SOMALIA:

NO SEASON

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$820, White Sesame Tiny Small Sesame US$ 1,350 Black Double Husk Sesame US$ 920.

CHINA:

As per data of China customs, since January 19thm, 2018, the goods from Nigeria, Peru and Brazil should have the Anti-Mosquito Certificate. For the goods from Niger, as long as it will be via Nigeria, the Anti-Mosquito Certificate is also needed. Otherwise, it should make the fumigation at China Port.

According to China Customs, In the month of December, 2017, China imported 49385551 kg sesame at the price of US$1.145/kg,16510862 kg from Sudan at the price of 1.158 USD/kg ,14963050 kg from Ethiopia at the price of US$1.195/kg and 10443350 kg from Niger at the price of US$1.072/kg. China exports sesame about 3,460,517 kg in December, 2017 with the average price at US$1.915/KG. Mostly it was exported to Korea with the quantity of 3,229,800KG. The second country is Japan with the quantity 135,000KG and the third one is Singapore with the quantity 40,350KG.

Mostly it is exported to Korea with the quantity 4,746,040 kg, 121.200 kg to Japan ranked the second and 36,750 kg to Vietnam ranked the third. According to what we know, the new sesame in China has been at the transaction in the market. In Henan and Hubei Province, because of the continuous rain, 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.

According to what we got from the port, it sells about 1,730 tons of goods at Huangdao Port .The downstream customers worry the goods will be delayed because of the logistic company having holiday ahead or having snow. Besides, the sesame price is reasonable at the port. So the sales quantity is more these day. More goods arrives at China port. And the price of sesame is reduced. Most of the arrival goods are from Nigeria and other countries in West Africa. The price of sesame from West Africa is mostly at 1,200---1,300USD/T and its cost is at about 8,900---9,600RMB/T. Such big a benefit must promote the Chinese importers at China port to sell the goods quickly to get the benefit. Most of them sell the goods by reducing the price. 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 have 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 over all market is down.

Personal View:

Market will be stable and little down ward for the next coming few days.  Overall market price of African Sesame will be range from US$1290 to US$1400 per mt. FOB