Market Report 10 – 14 June 2024

CTC Segment Overview:

• Mombasa Auction: Fair demand was observed for the 276k packages offered, with 49% remaining unsold. The all-average hammer price decreased by 1 cent to USD 2.01/kg. Flavoury EoR BP1s traded irregularly firm due to improved demand from buyers in Kazakhstan, Yemen, and CIS countries. KTDA WoR BP1s traded firm at reserve prices but saw reduced interest. Medium BP1s and plainer types experienced improved demand at firm to dearer rates.

• PF1s: KTDA EoR PF1s saw strong demand, trading irregularly firm to dearer, with significant interest from Pakistan packers, bazaar, UK, and Yemen buyers. KTDA WoR PF1s traded firm to dearer, while plainer PF1s had mixed performance, with some invoices trading dearer and others losing a few cents.

• Dust Auction: Best PDs traded irregularly firm, below best were firm to 2 cents dearer, and good mediums remained firm. Mediums and plainer types traded firm to dearer.

• Weather: Seasonally typical conditions with precipitation and increasing temperatures were reported on both sides of the Rift Valley, leading to a seasonal decline in crop intake. Despite the less favorable growing season, tea availability remains abundant, with 70-80k packages circulating as outlots each week.

• Other Markets: The Limbe auction faced less demand at generally easier rates, with only 35% of teas sold. Jakarta met strong demand with CTC teas selling at steady to firm rates. Kolkata and Guwahati auctions saw strong demand, particularly for the best Assam teas, which traded firm to dearer.

Orthodox Segment Overview:

• Colombo Auction: The auction offered 5.32 million kgs, down from 6.22 million kgs the previous week. Strong demand persisted across most tea grades. Better BOPs were dearer by USC 15, while below best declined by USC 10. BOPFs gained USC 8-10, with Uva BOPs and BOPFs also seeing price increases.

• Other Grades: Better OP1s traded firm, while others eased by USC 15. BOP1s strengthened by USC 30, and FBOPs gained USC 30-40. OP/OPAs traded firm to dearer as the sale progressed. PEKs and PEK1s gained USC 10-20. FF1s and FFs traded firm, and BOP/BOPF gained USC 10-20.

• Premiums & Dusts: Premium teas maintained prices, while high grown dusts were dearer by USC 10-20. Secondary and low grown dusts also saw price increases. FGS1, FNGs, and BMs experienced firm to dearer trends.

• Weather: The Western, Nuwara Eliya, and Low Grown regions reported gloomy weather with sporadic showers, while Uva and Udapussellawa regions had bright weather and steady crop intake. The Western and Low Grown regions saw a decline in crop intake, possibly due to declining quality and disruptions.

• Jakarta Auction: Strong demand was observed for 8,460 packages, with 1% unsold. Orthodox Java/Sumatra teas were well absorbed at firm to dearer levels, with active participation from multiple buyers. Weather in Java and Sumatra varied from sunny and hot in the mornings to irregular rainfalls.

This report provides a concise overview of the key developments in the CTC and Orthodox tea segments, highlighting price movements, demand trends, and weather conditions affecting production and sales.