Week 40, 2016
Tea market report 3-7 October, 2016
This week Mombasa went through the smallest sale in 73 auctions. Demand for the limited amount of tea on offer was
fair, with 14% remaining unsold. Only better PD/D1s were able to make a substantial step upwards. After the auction July
crop figure was published. For the first time this year a monthly crop figure is lower than last year’s but Kenya is still
cruising at a record crop for 2016. Areas around Nairobi are warming up while other areas EoR remain cool, east and
west of the Rift receive regular showers, and generally crop intake is slightly improving.
Malawi’s auction wasn’t as firm as last week, PF1 seedlings traded steady to 5cts easier while other grades continued
their firm trend. Weather conditions remain hot and dry, but this week with some unexpected chiperone showers.
In Sri Lanka it seems the only way is up, this week’s auction again traded firm to dearer with only some seasonal HG teas
trading easier. Relative stable currencies in Ceylon tea drinking countries, a firm mineral oil market and the start of winter
buying makes the demand side very healthy. Bright and dry weather conditions and trade union actions create tight
supply situation. In Jakarta demand slowed down this week, despite the relative low prices compared to earlier this year.
Weather conditions remain unusually favourable with daily heavy rains at both islands but surprisingly this isn’t resulting
in higher auction quantities. In the North of India weather conditions are favourable as well, although the monsoon has
withdrawn, there are still regular light rains combined with warm temperatures. Most ctc teas met fair demand and traded
steady to easier. In Vietnam the season is nearing the end but weather conditions make people think of summertime. The
middle and the south received more rains which result in a steady crop intake. Demand remains good and prices remain
firm.
Kenya is slowly warming up, weather conditions in India are still favourable and it seems favourable weather in Indonesia
can’t stop. On the other side in Sri Lanka the supply side remains very tight. Contrary to earlier this year demand in
Kenya, India and Indonesia is slow or slowing down while demand in Sri Lanka remains fully firm. But as we are heading
towards a record crop in Kenya, the first signs for September crop in India look promising and favourable weather in
Indonesia it is clear that there should be enough tea for everyone. Meanwhile one could ponder over the following
wisdom that goes for many markets:
“The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” –
John Templeton
Crop figures (in m.kgs)
Aug 16
Malawi
1.78
Sri Lanka
23.0
Aug 15
0.83
26.4
Jan-Aug 16
30.79
198.6
Jan-Aug 15
31.76
225.7
Jul 15
30.9
Jan-Jul 16
278.6
Jan-Jul 15
206.2
Forthcoming auction quantities (pkgs)
Week 41
Week 42
Mombasa
100,438
113,860
Blantyre
2,880
2,720
Colombo
5.31 m.kgs
4.97 m.kgs
Jakarta
8,120
N/A
Kolkata
No sale
183,005
Guwahati
No sale
137,143
Week 43
113,933
N/A
N/A
N/A
171,993
128,259
Jul 16
Kenya
29.3
KENYA
Auction – Less demand for 93,697 packages with 14% remaining unsold. BP1 best and below best trading firm to dearer.
Others trading steady to a few cents easier. PF1’s all-round trading steady to 5-15cts easier, only some good medium
types firmed up. PD’s best and below best traded 6-12cts dearer. Good medium types closed firm, where medium and
plainer types eased 10-20cts. D1’s best and below best trading firm to 5-10cts dearer. Other types eased 5-20cts.
Demand – Strong support from Yemen and Iran. Improved activity from Pakistan packers and UK, with Russia operating.
Kazakhstan, Pakistan Bazaar and Sudan maintained, where Afghanistan was less active. Egypt much slower and Somalia
active on the lower end.
Weather EoR – Nairobi area warming up with improving crop. Northern parts are still colder with some rain. WoR –
Scattered showers with sunny mornings and cloudy afternoons. In Western Uganda the rainfall is increasing and crop
improving.
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MALAWI
Auction – Good demand for limited quantity on offer. BP1’s trading 2-4cts dearer. PF1 SC trading up to 16cts dearer, PF1
Seedling met good enquiry trading up to 5usc easier. PDs taken out under bid. D1’s not on offer. Offgrade fngs trading 34cts dearer. Offgrade dust not on offer.
Weather – Dry and hot weather has been reported, some unexpected Chiperoni was reported last Monday and Tuesday in
different areas. Amongst them were some parts of Mulanje. Crop intake seasonally dropping.
SRI LANKA
Auction – Excellent demand for the 5,4 m.kgs on offer. HG – Western BOP & BOPF trading firm to 10-20cts dearer. N. Eliya
BOP/BOPF trading firm to 10-15cts dearer. Uva/Uda BOP/BOPF trading 10-15cts dearer. Seasonal BOP/BOPF eased 1015cts. LG – OP1 best and PEKOE bottom trading 20-40cts dearer. OP1 below best and bottom, BOP1 best, OP best, PEKOE
best and below best, FBOP/FBOP1 best, FF and BOP/BOPF best traded firm to 10-20cts dearer. OP below best and bottom,
OPA’s, FBOP/FBOP1 below best and bottom and FF1 trading firm to 5-10cts dearer. BOP1 below best and bottom, PEKOE1,
FF below best, BOP/BOPF below best and bottom trading firm. Tippies all-round firm. Off Grades – All round firm to 20cts
dearer. Dust – all round firm to up to 20cts dearer.
Demand – Strong demand from Turkish packers, good demand from Dubai, Pakistan and Iran. Iraq was selective.
Improved demand was met from Libya, Hong Kong and Japan. Russia still very active.
Weather – In the Western Region bright weather conditions and occasional scattered showers were reported. Uda/Uva had
bright weather, the same applied for N. Eliya but with more wind. Low Growns experienced bright weather with scattered
showers towards the weeks end.
INDONESIA
Auction – There was less demand for 7,960 packages, 25% remained unsold. The market in general was easier. Only
selected Java PF, Dust, PF2 and BT types traded firm to dearer.
Demand – UK, Malaysia, Middle East, Pakistan, Local, China and US active.
Weather – Heavy showers experienced in Western Java. Central and East Java reported sunny conditions with moderate
rains. Sumatra had sunny mornings with heavy showers in the afternoon. In the Southern and Central parts weather was
more mixed.
BANGLADESH
Auction – Good demand at slightly easier rates. Blenders were active on well-made teas, loose tea traders showed
selective demand. Next sale has 47,027 packages on offer.
INDIA
Kolkata
Auction – Fair demand with 65% of the offered teas sold. Selected lines of Assam teas trading sideways others trading
easier. Orthodox teas trading generally steady to easier. Better Darjeeling teas trading firm to dearer while less well made
teas eased up to 10cts.
Demand – TGBL showed less demand while HUL showing good support, internal traders supportive.
Weather – Some light showers and warm weather conditions have been reported, green leaf intake is improving.
Guwahati
Auction – CTC market met fair demand, better teas trading sideways while browner types trading easier.
Demand – Blenders selective, exporters showed limited demand.
Siliguri
Auction – No report received
Coonoor
Auction – Good demand for CTC leaf & dust, market trading firm to occasionally dearer.
Coimbatore
Auction – Orthodox leaf trading barely steady. CTC teas experienced good demand, good teas trading firm to dearer,
others tending easier.
Cochin
Auction – Less demand HG teas trading steady to 6-8 cts easier with dust trading 4-8cts easier.
All price movements quoted in US$ per kilo.p
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