Market Report – Week 39 (26 September 2024

African Markets

Kenya – Fair Demand

• Mombasa Auction:

  • Offerings & Prices: 156,469 packages were offered, with 57% remaining unsold. The all-average hammer price gained 5 USC to USD 2.09/kg.

  • Grade Trends:

    • Flavoury BP1s saw improved demand, driven by Kazakhstan, Pakistan, and CIS buyers.

    • WoR BP1s faced reduced demand, while medium BP1s held firm. Plainer types showed mixed results.

    • PF1s opened strong but eased towards the close; reprints were neglected.

  • Weather & Crop: Seasonal conditions persisted with regular rainfall. Crop intake remains steady.

Malawi – No Demand

• Blantyre Auction:

  • No demand was observed for the 1,540 packages on offer, reflecting seasonal low interest and limited offerings.

  • Weather & Crop: Chiperoni weather brought intermittent rainfall. Crop intakes remain seasonally good, with expectations for reduced production post-October.

Other African Regions

• Uganda: Averaged USC 101, with brighter PF1s experiencing subdued demand.

• Rwanda: Averaged USC 311, with premium prices for BP1 and PD grades.

• Tanzania & Burundi: Modest recovery in demand, with Tanzanian teas averaging USC 121 and Burundi at USC 199.

Asian Markets

Sri Lanka – Strong Demand

• Colombo Auction:

  • Offerings & Prices: 11,698 packages were offered, with strong demand across categories.

  • Grade Highlights:

    • Ex-Estate: BOPs remained firm; BOPFs gained USC 3. Nuwara Eliya teas were unsold, while Uva teas increased by USC 10.

    • Leafy Teas: OP1s and BOP1s remained firm, with select grades showing gains of USC 15-40.

    • Dusts: High-grown dusts gained USC 10-15; low-grown dusts strengthened by USC 12-18.

  • Weather Impact: Rainfall supported crop improvement, though erratic patterns could affect short-term output.

India – Strong Demand

• North & South India:

  • Strong buying was observed for Orthodox teas, supported by export demand, particularly from China and Pakistan.

  • CTC teas remained firm due to domestic demand, with festivals contributing to increased consumption.

  • Weather conditions in Assam remained challenging, with excessive rainfall and flooding reducing production by 30% in May.

Indonesia – Better Demand

• Jakarta Auction:

  • 6,560 packages offered, with steady to easier trends for Orthodox and CTC teas.

  • Weather improved slightly, though rainfall continues to disrupt production.

Vietnam – Recovery Period

• Typhoon Yagi's aftermath has slowed production due to limited plucking caused by flooding and slippery terrains. Factories rely on existing stocks as recovery efforts continue.

Global Outlook

• Supply & Demand:

  • While demand for premium grades remains robust, challenges like container shortages and adverse weather conditions are affecting supply chains.

  • Production in India and Sri Lanka shows signs of recovery, with Sri Lanka benefiting from recent rainfall.

• Pricing Trends: Firm to dearer for most high-quality grades, though seasonal declines in Malawi and disruptions in Vietnam have created volatility.

The tea market remains dynamic, with a cautious yet optimistic outlook supported by steady demand and gradual recovery in production.