Week 51, 2014
Tea market report 15–19 December, 2014
No real change in market activity this week. The auction in Mombasa saw a softer tone for the majority although the better EoR KTDA types sold well. Blantyre did not have an auction and there will be no sale there until 30th December. Colombo was an erratic thing with uncertainty and devaluing currencies taking a toll. Jakarta bobbled along in much the same way as previously. North India continues to see good and active demand, South India though has turned more uncertain.
The weather in East Africa is still favourable for growth, however Kenya is showing signs of turning slightly drier which is seasonally normal and no bad thing in the current circumstances of oversupply and low prices. Malawi has seen rain but not in the tea growing districts and the season is going to be a late starter. The weather in Asia is normal for the time and the season in North India is effectively over.
This is the last Tea market report from us for 2014. It has been a difficult year for many tea producers, more so in Africa than elsewhere. The persistent oversupply that was evident from mid 2013 has just carried on and on with the huge 2014 crop intakes in Kenya exacerbating the problem. We still expect 2014 crop to exceed the already enormous 2013 number and we head into the New Year with a more than healthy carry-over. There are no bullish signs on the immediate horizon but if the weather is drier in the first quarter of 2015, then things could change from March onwards; time will tell.
Meantime, we wish all our readers a joyous festive season and best wishes for a happy, healthy and successful New Year.