Sesame Market Bulletin Senegal & Gambia January 10th, 2012

Hello everybody,

In the Gambia, transactions are growing in size; sesame sale prices by producers are around 20 dalasis/kg and sometimes reach 22 Dalasis/kg.

Transactions are going on in Senegal, but the marketing season is moving toward its end in the Central regions (Kaolack, Kaffrine, Fatick) where stocks held by producers have substantially decreased.  The most part of the stocks are held by reselling traders, some bana-bana (local traders) travel throughout the Southern regions (Sedhiou, Kolda).

In the Central regions (Kaolack, Kaffrine, Fatick), a general increase of the price is noted due to the decrease of available stocks.  In the regions of Kaffrine and Fatick, prices recorded at weekly markets exceed 29.5 Dalasis/kg and reach 31.5 to 33 Dalasis/kg in the areas of Koungheul and Kaffrine.

In the regions of Sedhiou and Kolda, the number of transactions is increasing and the bana-banas are particularly active.  In this part of the country, prices currently proposed are around 21.5 Dalasis/kg and, in some areas reach 23 Dalasis/kg.

In the central regions of Senegal, given the decrease in stocks and the levels of practised prices, the trend is toward stabilisation, while a slight upward trend can be noted in the southern regions of the country with the competition between buyers and bana-banas which is getting tougher.

SESAME SEED MARKET IN WEST AFRICA

In Burkina Faso, the marketing is still intensive and prices continue to increase in some areas. Prices range from 33 to 39.5 Dalasis/kg at farm gate and from 43 to 46 Dalasis/kg at wholesale warehouses where the product is gathered and washed.  The export prices for the natural white sesame seed of Burkina or Nigeria origin range from 1450 to 1550 USD/t (47.82 to 51.12 Dalasis/kg) FOB Lagos.

INTERNATIONAL SESAME MARKET

This week again, there is an overall increase of sesame seeds price on the international market.

In India, the quotation on the NCDEX is still near US$1900/t (62.66 Dalasis/kg) and FOB export offers are still available at more than US$2100/t (69.26 Dalasis/kg) for the white washed sesame seed, 99.95% pure.

In Ethiopia, prices have increased again. Currently the white washed sesame is traded at a price around US$1600/t (52.77 Dalasis/kg) on the ECX stock exchange. Weekly volumes traded on the ECX stock exchange have been reduced from more than 10,000 tons on November to about 5,000 tons per week since mid-December. This may indicate retention by producers and Ethiopian sesame cooperatives.

World prices of other oilseeds have experienced a slight decrease during these last days.

The exchange rate between CFA Franc and US Dollar is currently around US $1=CFA F500.

VIEWS OF ANALYSTS

The prices of the African sesame on the international market still can increase and bridge the gap existing between them and those of the sesame seed of Indian origin.  However, this year’s extremely high prices should affect negatively sesame demand in 2013 and it is therefore a possibility of a decrease of sesame prices in the medium term.

In these conditions, we recommend producers to sell 75% of their output anytime sales opportunities at, at least, 32 Dalasis are offered to them, and to keep 25% of their output in order to take advantage of any further raise.

Sesame buyers can hope to reach a wholesale price of 39.5 Dalasis/kg, but for the time being, they should not aim higher in order not to take excessive risks.