Week 43, 2014
Tea market report 20–24 October, 2014
More mixed fortunes around the globe this week. Fair demand in Mombasa at irregular rates with some up and some down, but with quite a chunk out listed which continues to show that buyers struggle to absorb it all. Malawi’s auction continues its two tier trend with a lot of old/poorer sorts proving hard to move. Operators in Sri Lanka acted cautious as they realize that it is quite easy to get caught at the wrong end of the price spectre, as this market stays highly volatile. The rally High Grown’s have shown in recent weeks has come to a halt whilst LG’s and off grades showed a mixed picture. Indonesia drifted easier and also here we see a lot of tea coming out unsold. North India saw better teas selling well but the bottom isn’t strong and in the south, going rates prove hard to sustain and prices drifted easier.
Three large export engines of tea; East Africa, North India and Sri Lanka continue to churn out a lot of tea. Growing conditions are normal to better than average and with the seasons in Central Africa and Argentina around the corner (and expected to be off to a good start), black tea production will stay healthy till the end of the year. It is also likely we’ll see a substantial carry over into the New Year which again are all strong indicators that at the start of 2015 we’ll see this soft trend continue. What is needed is a good, old fashioned, cold winter in the north and hot tea to keep people warm!
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