Good Day !
We take this opportunity to thank you for visiting our Booth at 'ANUGA 2011' Germany.
It was a pleasure meeting you at ANUGA and discussed the business prospects.
Just to give you an update, the new Sesame Seed crop has harvested and arrived in the market. We were expecting the prices to go down on arrival of the crop in market but we do not see that happening.
Our Association got a survey done and the crop is estimated to be around 300,000 Mt , some people still feel the numbers are high but since the sowing area did go up in UP and Rajasthan and rains stopped just in time before it could do any more damage we could be close to this number.
That said the crop is still short as compared to the previous years and the stockists are bullish. However since a lot of panic was created in the market before the harvest a lot of business was done for the old crop and that means that the actual demand could come in a little late than anticipated.
Sudan crop is projected to be smaller as well and so is china. However China we believe have good stocks at the moment and they can afford to wait a little longer for the african crop to come in before they step up their buying.
Considering all the variables & the volatility and as company policy of not speculating we suggest cautious buying and we think that it is better to try and make
a good average rather than wait for the bottom this year.
In Hulled we think there will be stiff resistance around $1700 FOB and $1900 FOB this year as well. If and when the prices do cross $2000 levels we expect a bull run upto $2400FOB after that.On the lower side we believe that $1650 FOB -1700 FOB should be the bottom for Premium Quality Hulled.
Not a lot of people have gone long this year ( buyers and sellers) and that should keep everyone busy all year round.
We look forward to your support and business.