The ultimate question is, where is the sesame seed market heading? The answer is difficult to draft.
After experiencing a year of drastic fluctuation in the Indian sesame seeds market, everyone is now waiting for the new crop and is awaiting to experience the hefty price movement in sesame.
The Indian sesame crop this year has not been promising enough to cater for domestic and global demands. The growing regions of India have been subject to detrimental climate conditions and as a result have produced poor yields and substandard material. Heavy rainfall has caused disastrous damage to the plants, resulting in a significant reduction in yields and an even smaller pool of material to draw down adequate and compliant stock for EU consumption. The overall crop is estimated to be less than 20,000mt.
Currently China is quite due to their strict regional lockdowns, however, we do expect their purchasing to pick up soon, in-line with a Korean tender of circa 8,000 – 10,000mt which will be held the first week of December.
Prices have been gaining traction and increasing over the past few weeks given the above factors.
It would be advised to take some cover and purchase requirements to at least to new crop.