Sesame: Speculators pushes down International Prices

Sesame Seeds Market Report:

Nigeria

Exchange rate is stable. Market is down little. New crop is expected to arrive next month beginning, as per talk with farmers and traders there in Nigeria, crop is goo this year. Crop will be little more than last year. Plantation done this year is more than last year. As over all local market was not ups and down like previous year i.e. 2015-16, this year farmers has planted more sesame seeds than earlier. Businesses took place at around US$1040 to 1060 per mt. for October-November Shipment for Whitish cargo. No Demand from China at higher prices. As forward business at lower prices, china is buying small quantities at forward lower prices. No demand from Turkey. No buying from other countries all are waiting for new crop arrival.  

TOGO/MALI/Burkina:

Prices are down little in the local market. Today, prices in dollar also down. Yet there are three months to go for the new crop. There is no demand at higher prices from china. There is no demand since Saturday. Exchange rate is stable. Buyers are looking lower prices in the market but there is not much stock available. New offer will start in October- November. Market will move ups and down according the market situation in Nigeria.

Ethiopia: 

ECX Prices are stable and little down. As Nigeria started offering at lower prices, Ethiopia prics also have stop and started lower offering since last two days. No demand from china at higher level. Overall local market is down in Ethiopia. Today Ethiopia Humera cargo is offered at US$1160 per mt. but no buyers at this level.  People are waiting to go price down by another 40 to 50 dollars. US$1100 is the level where chines buyer can buy from Ethiopia.

Sudan:

Exchange is stable. Sudan offered prices are stable and little down. Market is down as there is no demand from china and other countries. There is moderate stock in the local market.

Somalia:

Local market is stable and little down due to no demand from India and other countries.

Bangladesh:

Local market is stable. China has stopped buying at higher prices. There is demand at lower prices for brown sesame seeds. But local market is not that much down as per the international prices. So market is stable and little down.

Tanzania/Mozambique:

Market is stable in the local market. No demand at higher prices, Prices start going down little. Tanzania shippers are quoting prices for 1100 dollars but no buyers are ready to buy. They are now looking for Nigeria new crop.  Not much cargo left in the local market with farmers. Major cargo reaches to the Shippers/Exporter and stockiest hand.  Demand stable and slow down since beginning of this week. Market will go little down further.

Indian:

Exchange rate is stable vs. Dollar.  Local market is up today. There is local demand for hulled sesame as well as natural sesame due to festival season. Over all oil market is up in India. Market can go down when new crop arrival time coming closer.

Report on China:

Local market prices are stable and little down on Tuesday and Wednesday. China market has going down due to lower from Nigeria new crop.

The reasons for sesame market to go up and down: 

1. Local crop prices stop increasing faster. Local market get stable and little down .
2. International Prices are coming down due to no demand at higher prices
3. There are some businesses reported from Nigeria new crop @1040 per mt. which will push the prices down and not allow to go up in coming future.
4. New offers have started floating in the market from Nigeria at lower than current market prices by speculators.
5. Local prices have to go up during October-November as per demand and supply estimation.

Personal Views:

According to personal views Indian Prices should be stable. International prices will also move down. If Nigerian shippers speculate the market and starts offering lower prices than market will go down further to level of US$1000 and below.