Market update Sesame Seeds:
Sesame seeds market has been dropping in the last week as we are seeing good arrivals and the effects of Cyclone Tauktae are maybe not be as bad as initially expected. We might still see a 20-40% effect on the crop, but majorly on the quality and thus we might see a decent crop in terms of size.
In India, new crops are usually harvested in Gujarat and West Bengal (double skin seed for Oil crushing mainly) in the summer months. Both these states were hit with Cyclones – Tauktae and Yaas respectively, but we are yet to receive confirmed news of the extent of the damage. As of now, the fact on Sesame crop size is not very big.
Elsewhere, Tanzania and Mozambique are reporting decent, similar crops to previous years (a little higher possibly). Brazil unfortunately is reporting a lower crop size due to prices not being attractive to the farmers and alternative crops are much more viable and profitable. We might see a similar trend in other Origins (China for sure) as farmers seem to be noticing that almost all other commodities prices are up, but Sesame is down.
Inquiries and Demand, as always, have already increased with the new crop arrivals. All eyes are on China, which has high stocks at their ports. But, reports suggest not much cargo was shipped recently as all October crop contracts from Africa are already arrived/on the way. There might be a short window, if prices are attractive, for big demand from China for prompt shipments until new crops from Africa arrive in July end-August.
The prices have corrected significantly in the last one week since the arrivals started. There could still be a small correction of $50/MT from the current levels. However, this juncture we don’t see any scope for major decrease from current levels.