Sesame Seeds - Sesame Market Dynamics Unveiled; Forecasts, Imports, Exports, and Challenges

Sesame Weekly Updates

Mintec Global
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India’s Sesame Insights: Acreage Decline, Crop Sowing Changes, and Production Decline Trends

Gujarat, India:

  • Sesame acreage decreased by 8% compared to last year’s summer season.
  • Predominant diversion of sesame acreage to other crops such as Moong and Urad in Junagadh, Fodder crop in Surendranagar, and Bajra in Amreli.
  • Anticipated 12% decrease in production compared to last year, totaling around 123,000 MT.
  • Expected sesame yield decrease by 4.4% due to weather anomalies and water shortage.

China’s Sesame Market: Stock Origins and Reducing Demand

Qingdao Port, China:

  • Main stock origins from Nigeria and Togo.
  • Nigerian mixed sesame costs around $1798 USD/MT.
  • Prioritization of cheaper varieties by hulling and oil factories, reducing demand for Tanzanian and Pakistani sesame.
  • Pakistani sesame mainly sold to roasted factories at $1880 USD/MT, with limited demand for Tanzanian sesame.
  • Chad sesame preferred for similar purposes due to attractive pricing.
  • Some traders selling at lower prices, even at a loss, due to financial pressure.
  • Oil factories experiencing losses this month, with blended oil becoming increasingly competitive.
  • Qingdao port stock as of 07/05/2024: approximately 223,364 MT.

Tanzania’s Sesame Sector: Price Surge, Adverse Weather, and Export Outlook

Tanzania:

  • Higher sesame prices compared to competing crops like sunflower seeds and soybeans, motivating increased sesame planting.
  • Promising results from the sowing season.
  • Adverse weather conditions impacting areas around Morogoro and near Dar Es Salaam.
  • Uncertain extent of damage to quantity and concerns about impacts on seed quality.
  • Export quantity estimates: around 150,000 MT for 2024.
  • Offer prices: Mixed sesame – $1650 to $1680 USD/MT, White Sesame – $1700 to $1730 USD/MT, South Sesame $1730 to $1750 USD/MT.

Mozambique’s Sesame Forecast: Rainfall Benefits, Yield Expectations, and Stock Status

Mozambique:

  • Anticipated sesame seed production of approximately 90,000 MT in 2024.
  • Favorable rainfall conditions leading to expectations of similar or slightly higher crop yield than last year.
  • Outcome dependent on prevailing weather conditions until July.
  • Overall Qingdao port stock as of 07/05/2024: approximately 223,364 MT.
  • Tanzania exported around 155,000 MT in 2023, with an estimated export quantity of around 150,000 MT for 2024.

Brazil’s Sesame Landscape: Expansion, Challenges, and Market Reach

Brazil:

  • Commencement of sesame sowing season with notable expansion into new areas.
  • Productivity challenges for new sesame producers.
  • Sesame emerging as an attractive alternative for cultivation during the second harvest, especially compared to corn.
  • Flooding in the state of Rio Grande do Sul with little impact on sesame production as the main production area is Mato Grosso.
  • Mato Grosso expected to see a bumper crop in terms of quality and quantity due to increased sesame crop area.

Key markets: India, Türkiye, Vietnam, and various parts of the Middle East.