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Weekly market report

 


Week 34, 2016

 

Tea market report 22-26 August, 2016

 

Mombasa was overall an easier market. The BP1 types traded irregular, where the side of the Rift Valley regulated the price increase or decrease. Better PF1’s recovered to an extent. WoR, however, eased albeit absorption was good as several large buyers were back in the market again after some quiet weeks. PD and Dusts were absorbed well by their traditional markets, but at easier rates. We noticed a rather high outlot figure with the amount of tea available. With current weather conditions we see no large upside potential in the short term.  In Malawi there were many outlots as well, but this had to do with the quality of the tea and a main buyer taking a break. All the well-made teas have been sold, although the market was barely steady. One of the first cancellations of the dry season will be in two weeks’ time so we’re going bi-weekly. Despite this cancellation the outlook for September crop is favourable due to a small flush, as there has been a bit of rain earlier. This week too, some rain has been reported in both Mulanje and Thyolo, but with the wind, cold nights and hot days the bushes are actually under a bit of stress.

 

In Colombo prices picked up where they left off last week and went further north. The traditional buyers of the Ceylon tea all were in a buying mood which may partly be caused by the stabilizing currencies in these markets. The export is a little behind last year and also the average price per kilo is a bit down. Some large buyers are compensating other major customers who are slowing down, explaining the small difference. Another week with a high percentage of outlots in Jakarta, resulting in a generally steady to easier market. Orthodox teas traded irregular for the Java types, but easier for Sumatra. Crop is still good and auction is 20-30% up compared to last year. Side effects of a Typhoon caused good rain in the planting districts of Vietnam, but also several damages were reported due to floods. Now the sun is required to really get into full swing. Many buyers are very active and prices are rising. Southern India were irregular again. Coonor met good demand with steady to dearer rates. Coimbatore also met good demand where orthodox teas went up, CTC tended down. In Cochin the market was dearer. In the north of India the monsoon continues to be active over the planting districts and the crop outturn is satisfactory. Result of the rains is the decrease in quality, which is showed in the easier rates for all the grades.

 

Enough tea is available and slightly lower volumes of CTC keep pace with a seasonal reduction in demand. Demand for Orthodox continues strong, except perhaps in Indonesia where demand is weak.

 

“Many of life’s failures are people who did not realize how close they were to success when they gave up” – Thomas Edison


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