India’s Sesame Sector Overview
As the summer sesame sowing season commences in India, it’s a critical time for market stakeholders, although it’s too early for exact sowing estimates. The market anticipates a clearer sowing status by the end of March. Sesame prices in the Indian market have decreased slightly by 2-3 rupees over the past 10-15 days, largely due to receiving lower bid quantities in the Korean tender than expected, coupled with quality concerns. Currently, prices for Sortex sesame hover in the range of 1,92 to 1,93 USD/Kg, with market arrivals low at about 1000 bags per day throughout Gujarat.
International Sesame Market Dynamics
China
The Qingdao port in China shows significant activity with the overall stock as of 04/03/2024 reaching approximately 145,098 MT. The Pakistan sesame seed stock at this port has dropped to around 20,000 MT levels after the New Year, indicating stagnation. Market demand and outflow volume from the port are pivotal factors influencing pricing and stock levels.
Nigeria
Nigeria’s anticipated crop size for this season is estimated between 320,000 MT to 350,000 MT, with expectations that around 250,000 to 260,000 MT have been exported so far. However, the constant devaluation of the Nigerian currency poses a challenge, with the Naira depreciating significantly against the USD from the beginning of March 2023 to the end of February 2024.
International Offers and Trends
The international sesame market is observing varied prices and stock levels, with Togo White sesame priced around 1800 USD/MT and Humera at 1890 USD/MT. Sellers are showing flexibility with possible discounts, while demand for Tanzania varieties has decreased in oil-crushing factories. The global sesame trade remains vibrant with the anticipated demand and pricing strategies playing a critical role in shaping the market.
Conclusion: Market Outlook and Strategic Movements
The sesame market, both in India and internationally, is experiencing shifts influenced by environmental challenges, economic fluctuations, and demand-supply dynamics. As India navigates through its sowing season amidst market quality concerns, international markets like China and Nigeria grapple with stock levels and currency valuation impacts. Stakeholders must remain agile, leveraging detailed market insights to navigate the evolving landscape and optimize their strategies accordingly.