Tea Market Report: Week 10 (4 – 8 March 2024)

CTC Segment Highlights:

• Mombasa auction saw improved demand ahead of smaller auctions in the upcoming weeks, resulting in a 4cts increase in the all-average hammer price.

• Flavoury KTDA EoR BP1s traded firm to dearer with increased interest from multiple buyer regions.

• Strong demand prevailed for KTDA EoR PF1s, selling at higher rates, while KTDA WoR PF1s traded firm with selected lots dearer.

• Weather conditions remain conducive for tea growth, with increasing crop intake reported.

Orthodox Segment Highlights:

• Colombo auction recorded increased offerings, witnessing firm to marginally dearer prices for various grades, particularly OP1s and BOP1s.

• Nuwara Eliya teas saw a significant improvement, with improved demand for select grades.

• All planting regions reported bright weather, although the Nuwara Eliya and Low Grown regions showed a decrease in crop intake.

Market Trends and Outlook:

• Shipping line adjustments have led to a shortage of vessels in less profitable routes, impacting exporters and driving rates up.

• Increased demand from traditional German traders and Middle Eastern markets ahead of Ramadan.

• Jakarta auction experienced good demand, particularly for Java/Sumatra Orthodox teas, despite fewer packages sold compared to last year.

This condensed summary provides insights into the recent developments and trends in both the CTC and Orthodox segments of the tea market, along with key factors influencing market dynamics and future outlook.