Week 45, 2016
Tea market report 7–11 November 2016
Most of the reports written in the northern hemisphere give us information the weather is turning cold. This probably
means a lot of people went to bed late last Tuesday, watching the American elections with a cup of tea. The expected
reactions of stock exchanges were a storm in a teacup, as the Dow Jones is close to a record when we write this report. In
Mombasa the market was divided as well and experienced a two tier market. All the better types were trading easier,
where the plainer types came up. Only for Egypt types this was not the case, the steps the government made to receive
the IMF loan were apparently convincing enough to buy teas again. The weather conditions are getting more favourable.
The closing in 3 weeks is showing a jump up. In Malawi there was no auction this week due to limited availability. Next
week there will be a small auction, followed by another week without auction. We received reports of some rain, but only
a few estates were lucky enough to receive them.
Colombo’s market is still small, but a little correction was noticed. It seems some buyers are not willing to pay the current
prices anymore. Crop is increasing in a modest way, but at least this should show higher auction figures in a couple of
weeks. Again this week all the planting districts experienced rain, this will further contribute to the fresh leafs in the long
run. A record crop in North India for September and the growing conditions are still good. A stunning 38% increase was
reported for Doaars, compared to September last year. Crop outturn maintained and the quality should be improving over
the following weeks, giving us coloury Assams. On the other hand the crop in South India is far behind. Not only an
average of 10% decrease in crop, but also forward contracts have not been fully delivered. Combined with the lack of rain
this gives producers serious concerns. Where Colombo is not surprising us with high prices anymore, the slow demand in
Indonesia begins to become a trend as well. There is much more tea available than usual which is resulting in 18% outlots
and generally easier rates. The publication of the results of the elections in the US during the auction caused some people
losing their attention. The growing conditions are still unusually favourable and the quality of the crop is maintaining, for
orthodox teas it’s improving.
In the North of Vietnam people are getting ready for the last plucking round, as winter is knocking on the door. The
growing regions in the middle and southern parts of the country are expected to pluck about two weeks longer. Prices
are firm with the foresight of limited quantity. When the winter starts in Vietnam the summer should begin in Argentina,
but we have been told it is still rather cold. The good thing is there has been a lot of rain to feed the bushes.
“The worst thing that can happen in a democracy - as well as in an individual's life - is to become cynical about the future
and lose hope.” – Hillary Clinton
Crop figures (in m.kgs)
Sep 16
Malawi
2.8
Kenya
36.8
India
184.6
Sep 15
1.3
36.5
155.5
Jan-Sep 16
35.4
344.9
901.7
Forthcoming auction quantities (pkgs)
Week 46
Week 47
Mombasa
118,525
126,695
Blantyre
1,180
No auction
Colombo
4.83 m.kgs
4.41 m.kgs
Jakarta
13,160
N/A
Kolkata
203,061
168,305
Guwahati
130,530
132,182
Week 48
133,650
N/A
N/A
N/A
180,138
181,093
Jan-Sep 15
33.9
271.1
877.2
KENYA
Auction – Fair demand for 116k packages with 10% outlots. BP1 best and below best eased 10-25cts. Good medium and
medium types trading irregular and plainer types trading firm to 8cts dearer. PF1s best and below best trading 10-15cts
easier, good medium and medium types trading firm to dearer. Plainer types firm to 7cts up. PDs best and below best
trading firm to dearer, good medium types eased 10cts. Medium and plainer types trading firm to 4-10cts dearer. D1s all
round trading firm to up to 10cts dearer.
Demand – There was more demand from Pakistan Packers while Yemen, Egypt, Bazaar, Somalia and UK showed increased
interest. Activity from Sudan was maintained with Kazakh active but at lower levels. There were less enquiries from
Afghanistan, Russia and Iran.
Weather EoR – Moderate rains received for most of the plantations, combined with mild temperatures. If rains continue
crop will increase. WoR – Scattered showers in the afternoon, mornings were sunny. Maintaining crop was reported. The
crop maintained in Western Uganda, although the rainfall increased. Despite the improving growing conditions in Rwanda
and Burundi the crop remains low.
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MALAWI
Auction – No auction.
Weather – Again a hot and dry week. There have been some isolated showers, but only a few estates were lucky enough
to receive them.
SRI LANKA
Auction – Good demand for the 4.35 m.kgs on offer. HG – Western BOP best trading firm, others eased 5-25cts. BOPF
generally trading 5cts easier, only bottom trading firm. N. Eliya BOP & BOPF eased 5-20cts. Uva/Uda BOP trading firm to
up to 10cts dearer. LG – OPA1, BOP1 below best and bottom, OP, OPA, PEKOE1, PEKOE below best and bottom,
FBOP/FBOP1 bottom and BOP/BOPF all trading firm. BOP1 select best and best, PEKOE select best and best eased 1020cts. FBOP/FBOP1 best and below best, FF1 & FF trading firm to 5-10cts dearer. Tippies – Generally trading firm, bottom
10cts dearer. Off Grades – All round trading firm to up to 30ctss dearer. Dust – All round eased 5-20cts.
Demand – Syria, Hong Kong and North America were active, Iran back in the market. Turkish bazaar was slow, so was
Russia. Dubai showed less demand, Iran, Pakistan and also Saudi Arabia were slow.
Weather – Western region had mixed weather. Some areas experienced bright mornings and evening showers, others just
had rainy days. N. Elyia reported bright mornings and evening showers. Both Uva/Uda and Low Grown region experienced
dull weather with a lot of rain.
INDONESIA
Auction – There was a slow demand for 10,300pkgs with 18% unsold during the auction. Java orthodox were generally
selling steady levels, but firm to dearer prices for BOP1, BOP, and Dust. Java PF did not meet any demand this week. Java
and Sumatra CTC were selling at steady to easier rates.
Demand – UK, Malaysia, Middle East, Pakistan, Local, China and US active.
Weather – Java experienced sunny and warm mornings, with showers during the afternoon. The same was there for
Northern Sumatra. Other parts of Sumatra experiences mixed weather throughout the week.
BANGLADESH
Auction – Improved demand, especially for the well-made teas. Prices opened firm, but eased during the auction. The
poor and plainer types were not in favour of the buyers, many withdrawals were reported. Next sale has 46,886 packages
on offer.
INDIA
Kolkata
Auction – Improved demand with 85% sold in the auction. Assams maintaining quality trading firm to dearer. Bright
liquoring brokens and fannings trading 5-8cts dearer, medium and plainer sorts trading fully firm. Bron leaf irregularly
easy.
Demand – HUL & TBGL active, so was Western India. Russia, ME and CIS all active.
Weather – Light showers came down over Assam due to a cyclonic disturbance.
Guwahati
Auction – Good and best sorts firm to dearer, others generally trading steady. Same applied for dust.
Demand – TBGL & HUL active, Western India active on liquoring sorts.
Siliguri
Auction – Good general demand at steady to easier rates. Traditional blenders operating, internal buyers active.
Coonoor
Auction – CTC met fair general demand, market was steady to occasionally dearer. Dust following.
Coimbatore
Auction – Orthodox leaf trading steady for limited quantity on offer. CTC met fair demand at steady rates.
Cochin
Auction – Orthodox met with fair demand. HG trading firm to dearer with well-made teas, where others trading 4-8cts
easier. CTC trading firm to 2-4cts dearer, dust 4-8cts dearer.
All price movements quoted in US$ per kilo.
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