Source: China AGLOOK!

1. Why is the sesame price increased while there is a higher inventory?

The price increase of this round begins from the end of April and the beginning of May. The Humera white is increased again and again from 10,100 RMB/T. The highest price has reached to 12,300 RMB/T. It has been increased 2,200 RMB/T (about 21.78%).The traders did get a rich benefit during the price increase of this round. Under the condition that their inventory has been reduced, they also had a good benefit. It is incomprehensible. Looking back into the history, when there is a higher inventory, generally the price should be lower. But it is contrary this time. This is because the external favorable factors (The overseas sesame price is increased continuously. The RMB depreciates continuously, leading the importation cost to be increased. The arrival quantity is less these months) and all of the traders at the port expect to have a higher price. But I think the main reason is that the downstream customers have less inventory and want to transfer the inventory pressure to the traders at the port the same as before. However, now the traders, who have the goods, at the port don’t have any pressure in capital. They want to sell the goods at a higher price. Besides, the downstream customers, who did need the sesame, buy the goods continuously so that it has formed a seller market. The price is sure to be pushed up by the traders.

2. It is hard for the price to further increase and the the market starts to show weak trends.......

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