Week 31, 2016
Tea market report 1-5 August, 2016
A lively opening in Mombasa that softened towards the close. PF1’s recovered from last week’s drop and so did most of
the PD & D1`s. Only BP1’s generally went south. There has been a lot of export this year until May, 213 million kilograms
versus 173 for the same period last year. Good demand is not only resulting in a firm market but also in the healthy
absorption rates. There wasn’t an auction in Blantyre, due to the seasonally low crop. There will be a small auction next
week, crop is expected to crawl up till mid-September.
Fair demand was reported for the auction in Jakarta. Most teas traded generally easier, except for some selected PTPN8
orthodox teas. Crop in general is still good and so are the auction quantities. Reduced rain in Java’s planting districts, in
Northern Sumatra daily thunderstorms were experienced where the weather in the south was drier. A slightly smaller
quantity on offer than last week, with over all the same quality. Only the seasonal Uva’s were improved. Most teas trading
at higher levels than last week. The average auction price for July recorded 13% higher than last year and also absorption
rates have been positive, despite the uncertain situation in many of the consuming countries. Most of the tea growing
areas had bright weather with evening showers, only Uda and Low Grown regions experienced dull weather conditions. In
Vietnam the market is more active, most buyers have returned from their holidays. The first typhoon has come over the
North of Vietnam, no major damage has been reported from the tea estates. A new low pressure area is expected to bring
more rain in the coming week.
Northern India met good general demand at lower levels. The floods have caused a lot of damage, but life is getting back
to normal. In Southern India the market was generally steady to easier, only Cochin CTC market trading fully firm. In
Argentina factories are having their annual maintenance and delivering ending contracts.
Most markets meet good to excellent demand these days. Although in many markets we’re in the off season, the supply
side is considered as healthier than ever. There is enough tea but due to firm demand volatility is expected.
“After a good cup of tea your soul will have summer” – Russian Philosophy
Crop figures (in m.kgs)
June 16
Sri Lanka
25.36
India
144.11
Jan-Jun 16
153.84
416.65
Jan-Jun 15
172.99
407.25
4.1
37.5
Jan-May16
28.4
213.8
Jan-May 15
29.0
143.0
Forthcoming auction quantities (pkgs)
Week 32
Week 33
Mombasa
121,941
114,444
Blantyre
2,560
2,600
Colombo
5.36 m.kgs
5.72 m.kgs
Jakarta
11,280
12,780
Kolkata
162,984
144,830
Guwahati
147,438
143,028
Week 34
115,065
N/A
N/A
N/A
N/A
N/A
May 16
Malawi
Kenya
3.4
36.6
June 15
29.28
125.51
May 15
KENYA
Auction – Good demand for 114,844 packages with 13.8% remaining unsold. Almost all BP1s trading steady to 8-15cts
easier, except for the best and plainer types. PF1’s trading firm to 8-12cts dearer. PD’s trading firm to 5cts dearer. D1’s
trading firm to dearer.
Demand – There was dominant demand from Yemen while Pakistan Packers and Afghanistan showed more activity. Egypt,
Bazaar, Somalia and Russia maintained interest while Iran was operating. Sudan showed some activity while UK and Kazak
were quieter.
Weather EoR – Some rains and warmer temperatures. Most factories running at below 40%. WoR – Scattered rains and a
little warmer. Crop intake is still declining, concerns over bushes due to the strikes. Less rain and less crop in Western
Uganda, also reducing crops in Rwanda & Burundi.
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MALAWI
Auction – No auction.
Demand – No auction.
Weather – In both Thyolo and Mulanje it is hot during the day and very cold at night. Crop intake slightly improving.
SRI LANKA
Auction – Good demand for the 5,9 m.kgs on offer. HG – Western BOP/BOPF trading firm to dearer, except for below best.
N. Eliya BOP trading up to 10cts dearer, whilst BOPF traded 10cts easier. BOPF trading firm to 5-20cts dearer. Uva/Uda
BOP & BOPF trading firm to 10cts dearer. Seasonal BOP trading 70cts dearer. LG – All LG teas trading firm to 5-15cts
dearer, except for Pekoe. Off Grades – Generally trading firm to 10-30cts dearer. Dust – All Dusts trading 5-20cts dearer.
Demand – Turkey. Iran showed improved demand, together with Hong Kong. Syria showed a significant improvement in
demand. Very strong demand from Russia, Saudi Arabia, North America and Dubai were active. Iraq and Libya slowed
down.
Weather – Western and N. Eliya experienced bright mornings with occasional showers. Udapussellawa region experienced
dull weather, whilst the Uva region reported bright mornings with heavy showers. Low Grown areas received some
scattered showers.
INDONESIA
Auction – Fair demand for 15,900 packages with 9% remaining unsold. Java Orthodox/CTC were selling at irregular levels
while Sumatra Orthodox/CTC were selling at steady to easier levels.
Demand – UK, Malaysia, Middle East, Pakistan, Local and US active.
Weather – Java reported dry weather overall with some isolated showers. North Sumatra reported thunderstorms with
heavy rainfall, whilst South Sumatra was dry.
BANGLADESH
Auction – Strong demand at dearer rates. Blenders and loose tea traders very active. Next sale has 40,577 packages on
offer.
INDIA
Kolkata
Auction – Good demand with 70% of the offered teas sold. Good liquoring Assam’s selling steady to easier, all others
easier following quality. Orthodox teas, tippy and whole leaf trading firm, fanning’s easier. Darjeeling trading firm,
except for flavour fanning’s trading up to 40cts dearer.
Demand – Western India active. TGBL and exporters selective Middle East and CIS active on the orthodox teas, continent
active on the tippy sorts.
Weather – Less rain reported and after floods conditions seem back to normal.
Guwahati
Auction – CTC market met good demand. Teas trading sideways. Dust met good demand, generally trading irregularly
easier.
Demand – TGBL and HUL selective. Western India operating on liquoring sorts. Other internals gave fair support.
Siliguri
Auction – Fairly good demand at easier rates.
Demand – Internal buyers were active together with blenders.
Coonoor
Auction – Market met fair demand, both dust and leaf trading steady to occasionally dearer.
Coimbatore
Auction – Both CTC and Leaf met good demand at firm to dearer levels.
Cochin
Auction – Good demand for teas on offer. HG and medium trading 8-10cts dearer. CTC leaf trading 4-6cts dearer, dust
trading 10-15cts dearer.
All price movements quoted in US$ per kilo.
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