The recent events in the sesame market, mainly driven by South Korea’s landmark tender, have set a new trajectory for white sesame, with several global factors in play.
South Korea’s tender: Highest bid price to date
South Korea’s recent tender of 8,100 tonnes has broken records, marking the highest bid price to date. While only 6,810 tonnes have been successfully ordered, the impact on the global sesame trade is undeniable. Indian and international markets have been put on notice due to this monumental bid. In the South Korean tender, India secured an order of 2,025 tonnes within the price range of $2,188 to $2,298 per tonne. Pakistan’s share is 2,685 tonnes, priced between $2,164 and $2,302, while Nigeria secured 750 tonnes at $2,299. China’s order for 450 tonnes came in at $2,296. Fueled by the Korean tender, this unprecedented high pricing is poised to shape the sesame market’s future.
The present sesame supply landscape is marked by scarcity, creating challenges and opportunities. While China’s demand appears sluggish due to limited availability, white sesame is scarce worldwide, barring Pakistan. Crop damages in various countries, including Tanzania, Mozambique, and Brazil, coupled with buying by China, have created a supply-demand gap, causing prices to soar. With the looming threat of El Nino and variations in sowing patterns across regions, the future of white sesame remains uncertain. Domestic demand is set to surge in August, driven by a seasonal demand phase. However, despite the price surge due to the Korean tender, experts predict a modest fall.
Experts opine that the Korean tender’s impact, supply dynamics, and domestic demand fluctuations create an intricate narrative as the sesame market sails through these turbulent waters. While the next few months will unveil the trajectory of white sesame prices, in the short run, Korean tender is the catalyst in the sesame market.