Market report ( 1- 5 January 2024)

Orthodox Tea Highlights:

- Jakarta auction opened with strong demand; only 3% remained unsold; dominated by Malaysia on Java and Sumatra grades.

- Java reported regular to heavy rains after a dry period; South Sumatra receiving regular rains with a stable crop.

- Kolkata auction experienced good demand; well-made brokens and larger leaf teas traded irregularly; 20% remained unsold.

CTC Segment:

- Mombasa's first sale of 2024 started with a softer tone; 40% of the 225k pkgs on offer remained unsold.

- Flavoury EoR BP1s traded irregularly firm, with selective interest from Pakistan; Kazakh buyers slowed down.

- KTDA WoR BP1s traded firm at reserve prices, driven by demand from UK & Pakistan packers.

- Medium BP1s varied, trading irregularly steady to easier; plainer types were dearer or remained steady.

- Flavoury EoR PF1s lost momentum, trading steady tending easier; KTDA WoR PF1s remained firm.

- Dust auction saw irregular demand, with KTDA teas at easier rates, while medium and plainer types held value.

Weather and Crop Conditions:

- Conducive weather for tea growth; green leaf intake robust in EoR and WoR.

- Decreased daytime temperatures and increased nighttime temperatures; crop harvest remains at season’s level.

- October crop set a record at 52mln kgs; YTD figure only 3mln kgs behind the record year of 2020.

- Winter conditions in tea-consuming countries may help balance the market despite the large tea supply.

- Limbe auction in Malawi had selective demand, offgrades met good demand at steady to dearer rates.

- Rains started in Mulanje and Thyolo, boosting crop production.

CTC Tea in Jakarta and Kolkata:

- Jakarta auction had strong demand, CTC teas traded firm; Sumatra BP1 traded firm up to 5cts dearer.

- Kolkata saw fair demand for CTC teas at easier rates; best Assams in Guwahati had irregular demand at slightly easier rates.