Sesame Seed Market Outlook 06.02.24

Globally, the Sesame market presents a mosaic of diverse trade dynamics and evolving trends, each with its unique challenges. One significant challenge is the impact of global events on trade routes, as exemplified by the Red Sea crisis, which has necessitated a redirection of shipping routes. This not only prolongs transit times but also increases overall costs, impacting the efficiency of the supply chain. Traders had anticipated a surge in demand before the holiday in India, however, the delayed arrival of winter temperatures there disrupted the supply chain and significantly contributed to the decline in prices. With temperatures now dropping in India, market players anticipate a revival in buying interest in the coming weeks.

As a result of heightened freight costs due to attacks on cargo ships in the Red Sea, export prices are higher than those before the turn of the year, despite domestic market price declines. Additionally, traders are eagerly awaiting the upcoming Korean tender, expected to be announced in the last week of January, with an estimated volume of 9,000-10,000 metric tons. Amid these intricacies, exporters must stay vigilant, as there is potential for a minor increase in white sesame on the horizon.

In conclusion, the current Sesame market is a complex and interconnected web. This comprehensive overview not only elucidates the present state of the market but also provides insights into the future trajectory of global Sesame trade, underscoring the need for adaptive strategies and international cooperation.