Market Report – Week 40 (28 November 2024)

African Markets

Kenya – Fair Demand

• Mombasa Auction:

  • Offerings & Prices: 300k packages on offer, absorption slightly reduced with 57% unsold. All-average hammer price increased by 5 USC to USD 2.09/kg.

  • Grade Trends:

    • Flavoury KTDA EoR BP1s saw strong demand with support from Kazakhstan, Pakistan, and CIS.

    • KTDA WoR BP1s had reduced demand at reserve prices.

    • Medium and plainer BP1s traded firm to slightly dearer.

    • PF1s started strong but eased toward the close.

  • Weather & Crop: Regular rainfall and sunny spells prevailed. Crop intake remains steady.

Malawi – Improved Demand

• Blantyre Auction:

  • Offerings & Prices: 149,133 packages on offer, with 45% unsold. High-quality liquoring teas saw firmer prices, while lower-quality teas experienced price fluctuations.

  • Grade Trends: BP1s and PF1s traded firm to dearer, while PDs and D1s gained USC 10-15.

  • Weather & Crop: Favorable weather with alternating rain and sunshine boosted crop intakes.

Other African Markets

• Uganda: Brighter teas traded firm to dearer; medium grades faced reduced interest.

• Rwanda & Burundi: Strong demand for bright liquoring teas. Prices averaged USC 332 and USC 199, respectively.

Asian Markets

Sri Lanka – Steady Demand

• Colombo Auction:

  • Offerings & Prices: 11,572 packages offered with strong demand across categories.

  • Grade Highlights:

    • Ex-Estate BOPs remained firm; BOPFs gained USC 8.

    • Low Grown Leafy Teas: OP1s gained USC 10-20, and PEK1s firmed up by USC 20-30.

    • Dusts: High-grown dusts gained USC 15-20; low-grown dusts gained USC 15.

  • Weather & Outlook: Rainfall improved crop production, supporting steady to firm prices.

India – Strong Demand

• North & South India:

  • Strong demand for Orthodox and CTC teas, driven by export markets and domestic consumption.

  • Rainfall in Assam and southern regions supported improved crop expectations.

Indonesia – Improved Demand

• Jakarta Auction:

  • 7,120 packages on offer, with Orthodox and CTC teas selling steady to firm.

  • Favorable weather supported increased plucking before the onset of cooler temperatures.

Vietnam – Recovery Mode

• Heavy rains post-Typhoon Yagi caused flooding, slowing production. Factories are relying on existing stocks as harvesting resumes under improved conditions.

Global Outlook

• Supply & Demand: Favorable weather in key regions supports steady production, but selective buying is expected to maintain focus on quality.

• Pricing Trends: Firm to dearer prices for premium grades globally, though low-quality teas face challenges due to selective demand.

The global tea market remains resilient, with demand patterns favoring quality over quantity. Optimistic production forecasts and improved weather conditions point toward a stable outlook.