Week 49, 2013
Tea market report 2–6 December, 2013
Not a vast amount of change in the market pattern this week. Mombasa met fairly good though slightly mixed demand and price movements were limited both ways. Blantyre was a lacklustre affair with a notable weight unsold. Colombo continued strong and Jakarta saw an improvement in demand. The auctions in North India went on as before with the better teas well absorbed at firm rates but the medium and better sorts were barely steady with some out-listings. In South India, prices slipped further for both orthodox and CTC.
Without a doubt, global weather is favourable for growth in the origins which are in season. Future forecasts are the same and no immediate shortages are expected anywhere. Kenya should turn drier early in the New Year but meantime, useful showers prevail and crop intakes are healthy. The weather pattern in Malawi, Argentina, Sri Lanka and Indonesia is seasonally normal with leaf intakes as expected for the time of year. Production in North India will case by mid December, which again, follows the usual pattern. In China & Vietnam plucking is all but over.
It is clear from current crop and offerings that we see no shortage of tea globally. Likewise, demand is healthy and the supply / demand equation is more or less in balance with supply perhaps a shade ahead of demand. Given this, we do not foresee too much change in current market conditions. The Christmas auction break is looming which can sometimes skew short term market movement but the fundamentals remain.
Here is some homespun truth for you:
“Everyone should be able to do one card trick, tell two jokes and recite three poems in case they are ever trapped in an elevator.”