Sesame Seeds Weekly Report

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India: Decrease In Crop

The summer sesame crop in Gujarat was initially estimated to be between 90,000 and 100,000 MT, but now it is anticipated to be between 85,000 and 90,000 MT. This is a slight decrease from the previous estimate. About 35,000 MT of the summer sesame crop has arrived in the market, similar to last week’s arrival rate of around 3000 MT per day. Various factors like poor seed quality and unfavorable rainfall conditions have contributed to the decline. Additionally, some farmers have harvested early, leading to reduced yields.

In May, an estimated 12,000 to 15,000 MT of summer sesame was exported, with another 18,000 to 20,000 MT expected in June. The daily arrival of white sesame in Gujarat ranges between 60,000 and 80,000 bags (80 kg each), with prices in the mandis hovering around 1,62 to 1,68 USD. Sortex sesame prices range from 1,69 to 1,70 USD. In the international market, Indian Sortex sesame prices range between 1,85 USD/kg and 1,89 USD/kg, consistent with last week’s range of 1,72 to 1,75 USD/kg.

China: Stable Supply

Togo white sesame prices have dropped to 1,93 USD/kg, down from 2,01 USD/kg last week, leaving early buyers at a loss. Sudan’s Gadarif sesame remains stable at 2,02 USD/kg. Pakistani sesame is priced at 1,84 USD/kg, consistent with last week’s prices. Nigerian mixed sesame transactions are occurring at 12,800 RMB/MT (1800 USD/MT), unchanged from the previous week. 

Earlier, Qingdao Port’s stock was approximately 228,067 MT on May 27, 2024. By the end of May, it surged to about 228,000 MT, representing a stable supply despite weak demand. Buyers are consistently seeking prices lower than sellers’ offers, reflecting a challenging market for sellers.

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Pakistan: Minimal Domestic Consumption

The sesame crop is still in its early stages, with hot weather prevailing in many regions. Timely rains are necessary to prevent crop damage. Pakistan has earned over 400 million USD in foreign exchange through sesame exports in 2023. Farmers received up to 240 USD/kg. Local consumption of sesame is only 5-10%, primarily used in bakery products and medicines. The sesame seed produced this year will be available from August 2024, with forward prices ranging from 1,58 to 1,60 USD/kg. Estimates indicate that around 40-50% of Pakistan’s crop has already been sold internationally. This week, the stock remains around 18,000 to 20,000 MT, reflecting stable market conditions.

Mozambique: Good Quality Crop Is Expected This Year

Mozambique is experiencing promising sesame seed production in both northern and central zones. If weather conditions remain favorable, excellent production numbers are expected. Harvesting began earlier than usual in mid-May, with arrivals at Nacala (5,000-10,000 MT) and Beira (5,000-7,000 MT). The quality of the seeds is better this year, featuring good color and acceptable moisture levels. Initial local prices were very high, around 1,62 to 1,64 USD/kg, but have now reduced to 1,44 to 1,49 USD/kg.

Mozambique is expected to export more than 115,000 MT of sesame this year, surpassing the usual 80,000-100,000 MT due to favorable weather and good production across all areas. The overall crop size is expected to exceed 125,000 MT. Major buyers of Mozambican sesame include China and Turkey. However, high freight costs to Turkey compared to China may present a barrier. India also imports Mozambican sesame, but India’s good crop might reduce its imports.

The sesame market is currently experiencing varied trends across different regions. China’s significant stock increase and price adjustments reflect market dynamics influenced by demand and supply. In India, crop quality and yield concerns impact overall production and export potential. Pakistan and Mozambique show promising export prospects, driven by favorable weather conditions and strategic international market engagements. The global sesame trade continues to adapt to regional developments, ensuring steady supply and price stability for stakeholders. Comparing this week’s report with last week’s, stability in prices and stock levels across major regions is observed, indicating a balanced market trend.