Week 35, 2014
Tea market report 25–29 August, 2014
A week that saw no real impetus in the markets. Clearly, there is too much tea on the table and buyers of the commodity can simply pick and choose without pushing prices in any way. Mombasa eased further, there was no sale in Limbe and Colombo was volatile but mostly down. Jakarta managed to buck the trend and show some resilience. The markets in North India attracted a little more demand and prices for the better types held but the remainder slipped. South India continues to bounce along at low levels.
The global weather patterns in all origins are seasonally normal or extra conducive for crop. Kenya is cold but continues to receive decent showers, heavier in the west than the east. Heavy rain in Uganda leads us to think western Kenya can expect even more. Temperatures will start to increase soon and our expectation is that Sep, Oct, Nov will be good months. Malawi is warmer by day and crop, for the time of year, surprisingly good. Sri Lanka is quite dry & windy in the east with isolated showers in the low country but auction quantities are holding up well. Indonesia is receiving light rains and mostly experiencing bright conditions. Crop is slowly increasing. North India remains in the grip of the Monsoon with further heavy rain in the past week whilst South India has also seen heavy rainfall. China and Vietnam are seasonally normal.
As said at the start, there is no shortage of tea and demand is struggling to soak up the heavy weight on offer. Africa has a rather healthier supply of tea than one might expect for the time of year (Kenya crop to end July already ahead of last year). This is reflected in the current ‘soggy’ markets and we feel this lacklustre trend will continue for the time being.
“When someone tells you nothing is impossible, ask him to dribble a football.”