Sesame Seeds : Defaults from Ethiopia and Tanzania generate new demand.

Sesame Seeds Market Report:

Nigeria

Exchange rate is stable. There is not much stock available in the local market. Almost stock is finished only left to pending orders. Balance stock is with the main exporters and there is not stock with the farmers. Since last one week there is demand from China market and which pushes the prices on fire and makes higher and higher. Today, prices offered in the local market are up by US$40 to US$50 per mt. Market will go further up for another $20 to US$ 30 per mt. in this week. Over all International prices moving up and all other countries also comes in demand. Sentiments are firm for timebeing.

TOGO/MALI/Burkina:

Stock is getting over and almost finished. Prices are up due to demand from china market. Today offered prices in dollar is higher side.  Exchange rate is stable. Market is going to be stronger in this week. Even at higher prices, china buyer is asking for the prices and confirming new business. There are some defaults took places due to market is higher. Demand continued makes market firm more and more.

Ethiopia: 

ECX Prices has gone up and there are much strong sentiments. There are some defaults from Ethiopian exporters, create new demand in the market and makes prices goes up. Prices has continue going up, which make upward trend in the local market. Prices again started rising and not much offer coming from exporters and traders and stockiest thinking that prices will continue to go up. China buyers are slowly accepting new higher prices as their local market also becomes at higher level. Today market is being offered at US$1210 for Humera Quality.

Sudan:

Exchange is stable. International prices have gone up and due to that local market prices are also upward. China started demand from Sudan as other market prices are higher now and to get better prices they have started buying from Sudan. Market will be firm for this week.

Somalia:

Local market is up as the Indian prices have gone up. There is demand from India started and also from china started makes prices up in Somalia local market too.

Bangladesh:

Local market is upward. China local market has gone up and shows strong sentiment market to go up and due to that there is demand from china for crushing grade as well as black sesame makes local market higher and firm.

Tanzania/Mozambique:

There was demand from china. Local there is short of goods and not much arrival by the traders and big farmers from villages. This year crop is down by 20 to 30% than last year. China buyers are asking for the prices but they are not able to get offer from the market. There are some defaults and due to that china buyers went to Tanzania makes more markets up. China demands for Tanzanian cargo continues.

Indian:

Exchange rate is stable vs. Dollar.  Local market is stable. As compare to other international prices, Indian Sesame Prices are on the higher side so there is not much demand for Natural sesame Seeds but there is demand for Hulled Sesame Seeds, which makes market stable.

Sesame seed market Indian crop is not bad as speculated, Karnataka red Brown Sesame arrival was poor, traded Mumbai delivery lowest US$980 to US$990 per mt.

Rain in Gujarat was bit terror but proportionally share of Madhya Pradesh and Uttar Pradesh is higher sowing in Acreage, will make Indian crop expected on an average 85 % of last year .

This will make Sesame market stable and for Quality 99/1/1/ Rs.US$980 bottom and Premium Hulled quality US$1390 will not breach easily.

Support from international market at higher level is not digested due to three reasons:

1. Nigeria hulled FOB rate is US$1420 and African New crop will come in selling from October
2. As such Sesame seed market appreciated only because Indian price was over pressed at wrong time.
3. Weak dollar trend like compel Indian exporter to quote higher CNF numbers where said number have difficulties in price band of African Sesame Seed.
4. Tender demand may one more time, may come to India as India still cheapest, Then on September-October onwards will have tough competition  from Africa .

Overall, Indian market will remain range bound between US$1400 to US$157 per mt. for Hulled Premium segment.  Natural and sortex  will have its same difference.

Report on China:

The Price continues to go higher side in the local market which makes more difference between international prices and local prices. Because of good margin and attractive return at the moment people start buying. China new crop start harvesting in some of the area prices are quoted in the local market at higher level.

Market has gone up US$30 in last two days. According to the view of the importers, analysis the reasons for sesame market to go up:

1. Stock Inventory at Ports have reduced more, less new arrival at the port for imported sesame.
2. There are defaults from exporters to China buyers generate fresh demand and due to that market is getting firm.
3. Stock levels at all origin are getting reduced a lot and china buyers are not getting offers which china importers are demanding.
4. Tanzania crop has shortage this year.

Personal Views:

According to personal views Indian Prices will be go up. International prices will also move up. Market will go up as all origins.