Market Report – Week 18

🇰🇪 Kenya – Fair General Demand, Softer Pricing

The Mombasa auction saw 198,000 packages offered (down from 205k), with a heavy 39% remaining unsold. Prices trended steady to easier, resulting in a 4 USC drop in the average price to USD 1.96/kg.

• BP1s: East of Rift (EoR) flavory grades held firm, others eased. West of Rift (WoR) better types sold steadily, while poor types saw selective, easier demand.

• PF1s: EoR segment improved with strong demand from Pakistan, UK, and Afghanistan—trading firm to dearer. WoR teas met selective demand. Medium and plainer PF1s traded steady to easier.

• Dust Grades: PDs were steady to easier; D1s firm to dearer. Medium and plainer PD/D1s saw weaker demand as Egyptian packers reduced activity.

Active Markets: Kazakhstan led demand, followed by Yemen, Pakistan, Afghanistan, UK, and CIS. Egypt was slower; both Sudans remained absent.

Weather: Heavy rainfall and thunderstorms with rising day temps and cooler nights. Crop harvest increased.

Outlook: Weekly volumes expected to stabilize around 190k packages, though still below prior years. With improved rainfall, production is anticipated to rise. Demand is expected to gradually pick up as key buyers return.

🇲🇼 Malawi – Good Demand Except Offgrades

The Limbe auction offered 6,720 packages. BP1s held firm; PF1sc traded steady to slightly easier. Seedling PF1s held value. PDs remained neglected, while D1s and Offgrade Dusts saw stable to slightly easier trends. Fannings with poor leaf quality eased by up to 4 USC.

Weather: Hot days and cool nights across Mulanje and Thyolo. Rain forecasts indicate normal to above-normal patterns, though November may see dry spells.

Crop: Intakes easing seasonally. Cup and leaf quality remain strong.

Outlook: Stable.

🌍 Other African Markets

• Uganda: Selective demand, all grades steady to easier.

• Tanzania: Steady to easier demand.

• Rwanda: Strong demand; brokens dearer.

• Burundi: Availability increased, but poor quality and pricing resistance impacted sales.

🇱🇰 Sri Lanka – Fair Demand Amid Price Correction

Colombo saw 6.44 Mn Kgs on offer. Although demand was steady, prices corrected across segments.

• Ex-Estate: BOPs down by USC 10–15, BOPFs down by USC 10–20. Uva BOPs held firm; others eased.

• CTC: PF1s declined across grades. BP1s traded irregularly easier.

• Medium Grown: OP1s and BOP1s eased. FBOPs firm; FF1s held steady.

• Low Grown Leafy: Select best OP1s down by USC 30; other grades mostly firm.

• Small Leaf & Premium: FBOPs and FF1s firm; FFs gained USC 8.

• Offgrades: Mixed trend; some firm, others eased.

• Dusts: High Grown and Secondary Dusts shed 5–10 USC.

Market Insight: Despite corrections, Orthodox teas stayed buoyant. New buyers are entering, keeping demand firm. Regulatory developments aim to protect growers.

🇮🇳 India – Good Demand

Orthodox teas saw decent export demand, especially long-leaf types. CTC demand was strong from domestic packers. South India followed similar trends. Dust grades firmed up due to upcoming regional festivals. Annual production may end 12–15% lower, keeping prices firm due to tight supply.

🇮🇩 Indonesia – Good Demand

Jakarta auction offered 4,640 packages with just 7% unsold. Orthodox and CTC teas sold steady to firm. Select PF/Dust invoices traded dearer. May auction volumes remain low, below 5k packages. Demand expected to remain strong.

🇻🇳 Vietnam – Improving Conditions

After prolonged dryness, rains returned, boosting optimism. Tea bushes are greening, but more time is needed before harvesting begins. Stocks from the previous season are being cleared. Demand remains strong, especially from the U.S., suggesting green tea prices may rise this year.