Market Report – Week 14

Kenya – Steady Demand Amid Price Easing

Mombasa's auction offered 191,938 packages this week, slightly higher than last week, with improved absorption. However, 27% remained unsold, and the average hammer price dipped by 2 USC to USD 2.09/kg. While high-quality BP1s held steady, below-best and plainer grades saw price declines. PF1s from KTDA EoR continued to drop in value amid increased offerings and limited demand from Afghan and Bazar buyers (due to Eid). Dust grades saw mixed performance, with firm D1s and better PDs showing strength.

Weather: Most tea-growing regions received improved rainfall with decreasing daytime temperatures. Crop harvest is gradually increasing.

Outlook: Tea availability remains steady (~190k pkgs) but below previous years. Demand remains selective post-Eid, with Sudan still absent.

🌍 Malawi – Improved Demand

Blantyre reported increased interest with improved demand for BP1s at higher rates, although PDs remained neglected. Total offerings stood at 7,220 packages.

Weather: Warm days and cool nights continue in Mulanje and Thyolo. Light showers were reported in Mulanje.

Outlook: Healthy crop intakes; market expected to remain steady.

🌍 Rwanda, Uganda, Burundi, Tanzania – Mixed to Selective Demand

• Rwanda: Selective demand at steady to easier levels.

• Uganda: Better teas sold steadily; poor grades met selective demand.

• Burundi: Poor quality led to nil demand on main grades.

• Tanzania: Demand selective, at easier rates.

🌏 Sri Lanka – Steady Demand

Total auction volume stood at 5.55 Mn kg. Low Grown teas eased, Medium Grown were firm, and High Grown saw improved demand.

• Ex-Estate: BOPs fell (up to USC 65), while BOPFs gained USC 5–8. Nuwara Eliya saw better uptake; Uva BOPs rose by USC 30.

• CTC: PF1s in Low Growns gained; BP1s largely unsold. Medium & High Grown PF1s slipped up to USC 10.

• Leafy Teas: Mixed trends – Select best OP1s eased, but others gained. Very tippy teas appreciated by up to USC 40.

• Dusts & Off-Grades: Mostly firm to slightly lower, with selected RA-certified grades gaining strongly.

Outlook: Improved weather may boost upcoming production, but estate worker protests could affect supply.

🇮🇳 India – Strong Domestic Demand

Both Orthodox and CTC markets are buoyant, driven by domestic and export demand. North India’s first flush has begun, but Darjeeling remains patchy. South India production is ramping up with recent rains.

Forecast: India may surpass Sri Lanka in 2024 exports due to pricing advantage. Domestic consumption remains strong.

🇻🇳 Vietnam – Supply Constraints Continue

Cool but dry weather has delayed the season. No spring yield was collected, and main season harvest is expected to be just 70% of last year’s. Forward contracts are helping factories manage supply and quality.