Week 29, 2016
Tea market report 18-22 July, 2016
A volatile selection of markets this week. Despite of the first levy free auction held this week in Mombasa and reduced offerings, most teas eased. Especially for the BP1’s and PF1’s on offer. Blantyre was up this week for the small quantity on offer, which will most likely continue due to the fact that next week there won’t be an auction because of to the seasonal lack of tea. Colombo continued with a very strong market with almost all teas selling at higher levels in the auction. The Jakarta auction met with good demand this week at irregular levels. However auction offerings show increasing quantities, which is remarkable for this time of year.
Dry weather conditions prevail in Kenya with cold nights. Some scattered showers in the west have been reported but nothing in the east. Crop continues to reduce. Some useful precipitation in Malawi has been reported in both Mulanje and Thyolo, but crop remains low as July is traditionally the lowest cropping month. There is some concern in Sri Lanka about the weather, conditions are dry in High Grown sections for this time of the year. In addition, despite the rain over the last couple of weeks in the Low Grown areas crop remains slightly low. Offerings are declining. In Indonesia crop is holding up well.
The small dip in prices this week in Mombasa can be prolonged but we can’t expect a weakening market for long time in East Africa, as supply is seasonally tightening. There seems to be limited downside ahead in Colombo as well, as the demand remains very strong and offerings are reducing. All in all, we expect a good measure of volatility in the coming weeks.
“Anyone who believes in indefinite growth on a physically finite planet is either mad, or an economist.” – David Attenborough
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