Sesame Market Struggles: Can Global Supply Keep Up?
India: Rising Prices and Delayed Harvests Add to the Pressure
In India, sesame farmers are feeling the heat as delayed harvests, now expected in late September or early October, are causing price hikes. Excessive rains have damaged crops in major sesame-growing states, and the market is seeing fewer summer goods arriving. Farmers are holding out, hoping for better weather to save what they can. In Gujarat, the rains are still disrupting harvests, leaving the market uncertain about how things will shape up.
China: Strong Demand, but Tough Production Year
China, a key player in the global sesame market, depends on imports for 80% of its sesame needs. Despite increasing its planting area by 27%, bad weather has taken a toll, and production is set to drop by 20%. Sesame is vital for China, with 55% used for crushing and 40% for edible purposes. But with production dropping, prices for imported sesame have been bouncing between $1,03 and $1,67 per kg, creating uncertainty for buyers.
Pakistan: Better Yields, Thanks to Hybrid Seeds
In Pakistan, things are looking up for sesame farmers. The 2023-2024 crop season is delivering higher yields thanks to hybrid seeds, with output estimated at 225,000 to 235,000 metric tons. Despite challenges like floods and moisture content, Pakistan is exporting 95% of its sesame crop—most of it heading to China. This is helping ease global shortages, even as other countries struggle.
Sudan: Conflict Hits Sesame Production Hard
Sudan, another major sesame producer, is battling production issues due to ongoing conflict. Only 40% of its planted sesame will likely be harvested this year. The conflict is making it hard for farmers to access their fields, and the economic instability isn’t helping either. Sudan’s exports are expected to take a big hit, with only 170,000 to 175,000 metric tons exported in the first half of 2024, compared to 315,000 metric tons in 2022.
Price Movements: A Mixed Bag Globally
Sesame prices in India have been on the rise in some markets.
The global sesame market is facing a lot of uncertainty. While India deals with delayed harvests and China’s production drops, Sudan is still grappling with conflict-driven setbacks. On the bright side, Pakistan’s strong harvest is helping stabilize the market, and Ethiopia is also showing promise. But with supply challenges everywhere, it’s anyone’s guess what the coming weeks will bring for sesame prices.
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In India, sesame farmers are feeling the heat as delayed harvests, now expected in late September or early October, are causing price hikes. Excessive rains have damaged crops in major sesame-growing states, and the market is seeing fewer summer goods arriving. Farmers are holding out, hoping for better weather to save what they can. In Gujarat, the rains are still disrupting harvests, leaving the market uncertain about how things will shape up.
China: Strong Demand, but Tough Production Year
China, a key player in the global sesame market, depends on imports for 80% of its sesame needs. Despite increasing its planting area by 27%, bad weather has taken a toll, and production is set to drop by 20%. Sesame is vital for China, with 55% used for crushing and 40% for edible purposes. But with production dropping, prices for imported sesame have been bouncing between $1,03 and $1,67 per kg, creating uncertainty for buyers.
Pakistan: Better Yields, Thanks to Hybrid Seeds
In Pakistan, things are looking up for sesame farmers. The 2023-2024 crop season is delivering higher yields thanks to hybrid seeds, with output estimated at 225,000 to 235,000 metric tons. Despite challenges like floods and moisture content, Pakistan is exporting 95% of its sesame crop—most of it heading to China. This is helping ease global shortages, even as other countries struggle.
Sudan: Conflict Hits Sesame Production Hard
Sudan, another major sesame producer, is battling production issues due to ongoing conflict. Only 40% of its planted sesame will likely be harvested this year. The conflict is making it hard for farmers to access their fields, and the economic instability isn’t helping either. Sudan’s exports are expected to take a big hit, with only 170,000 to 175,000 metric tons exported in the first half of 2024, compared to 315,000 metric tons in 2022.
Price Movements: A Mixed Bag Globally
Sesame prices in India have been on the rise in some markets.
- At Mundra Port, hulled sesame (99.98% purity) increased slightly from USD 1,98 to 1,99 per kg last week to USD 1,99 to 2,00 per kg this week.
- Gwalior saw no change, with Til White prices holding steady at USD 1,60 per kg, and hulling prices also remained stable at USD 1,57 per kg.
- In Gujarat, summer sesame (99/1/1) went up from USD 1,55 per kg to USD 1,57 per kg, while 99.95 Sortex sesame rose from USD 1,67 per kg to USD 1,73 per kg, marking a 3.6% increase.Â
- In Narasaraopet, Red Til New sesame (first quality) stayed stable at USD 1,26 per kg.
- Meanwhile, Agra saw no price change, with White Til Hulling holding at USD 1,86 per kg.
- Over in Rajkot, White Til (99.5 purity) saw a 3.6% increase, jumping from USD 1,68 per kg to USD 1,74 per kg, while the 99.1 variety increased from USD 1,55 per kg to USD 1,58 per kg, a 2.3% rise.
- White Til (98/2 purity) stayed at USD 1,50 per kg, and the 95/5 variety dropped from USD 1,44 per kg to USD 1,38 per kg, a 4.2% decreased.
The global sesame market is facing a lot of uncertainty. While India deals with delayed harvests and China’s production drops, Sudan is still grappling with conflict-driven setbacks. On the bright side, Pakistan’s strong harvest is helping stabilize the market, and Ethiopia is also showing promise. But with supply challenges everywhere, it’s anyone’s guess what the coming weeks will bring for sesame prices.
Click here to reach our trading platfrom CMBroker