Week 42, 2016
Tea market report 17-21 October, 2016
A generally reduced demand for Mombasa’s auction this week. Most of the grades traded easier with some BP1s and PF1s trading firm to dearer. The outlots increased to almost 12,000 packages. The weather still did not return to normal patterns for the time of the year, with reducing crops EoR. The area near Nairobi is warm and windy, the usual showers are falling down further north. On the other side crop seems to be improving in the Nandi region. Again most of the teas were sold after the auction in Blantyre. At the end of the auction day 79% of the teas were sold, mainly PDs remained unsold. The seasonal dryness is there again and the weather conditions are very hot and dry. Crop intake is low and in Mozambique tea estates are closed due to the little leaf intake. In two weeks there won’t be an auction due to a low quantity on offer.
The auction in Colombo showed another steep increase of the prices, in line with the excellent demand. One could ask himself what comes after the sky in the saying: ‘The sky is the limit’. A further reduction of the auction figures in the next two weeks will not help this case, as not all winter stocks are covered by the traditional buyers yet. On the other hand the long-awaited rains have finally arrived and good rains were reported. The end of the long dry spell is a good sign, but more rain is needed for the tea bushes to recover. An increased auction figure in Indonesia, but the demand did not follow the same direction. The weather at Java is turning drier which is very late for the time of the year. Weather conditions at Sumatra are still favourable and the crop intake is stable. An increased demand in Northern India after the Puja holiday. All operators were active, resulting in a generally firm to dearer market. The Monsoon has withdrawn, leaving the warm weather. All normal for this time of the year. What is not normal are the traffic restrictions on cargo, this results in a delay of seven to fifteen days in the port of Kolkata. In Southern India the trend of the market is easier, after a long climb up. Serious floods are occurring in the southern and middle parts of Vietnam due to heavy rain. In the northern area the weather remains favourable. Green leaf intake remains healthy, but quality is decreasing with the rains. Despite the lower quality prices remain firm.
“The best way to predict the future is to create it.” – Peter Drucker
To read the full report, please download the PDF file: