Tea Market Report: Week 17 (22 – 26 April 2024)

CTC Segment Highlights:

• Mombasa auction saw fair demand for 253k packages, leading to a higher all-average hammer price of USD 2.24/kg.

• Flavoury EoR BP1s traded mixed, with a generally easier trend. Below best BP1s traded steady to easier.

• KTDA BP1s met selective demand from Pakistan, UK, and Sudan, trading sideways.

• Medium BP1s were firm to dearer, while plainer types saw improved demand.

• KTDA PF1s saw lower prices for the third week, selling up to 20cts easier, with brighter lines easing by 10cts.

• KTDA PF1s traded steady with some invoices gaining up to 25cts.

• PD grades had mixed results, with KTDA EoR PD trading irregularly and WoR PD trading sideways.

• Weather conditions are conducive for growing tea, with regular rains and increasing temperatures boosting leaf intake.

• Despite abundant availability, demand remains unable to keep up with the supply, which is expected to remain stable.

• Jakarta auction experienced strong demand at firm to dearer rates.

• Indian elections influenced strong demand in Northern auctions, with firm levels for well-made Assam teas in Kolkata and Guwahati.

Orthodox Segment Highlights:

• Colombo auction offered 4.68 Mn kgs, a decrease from the previous week. Improved demand was noted.

• Leafy teas had better demand compared to High Grown Rotorvane Teas.

• BOPs and BOPFs eased by USC 10-20, while Nuwara Eliya BOPs and BOPFs declined by USC 20 and 15, respectively.

• Uva BOP/BOPFs were irregularly lower by USC 5-15.

• Better FBOPs declined by USC 15, while others eased by USC 5-10.

• OP/OPAs strengthened by USC 4-8, with some better OP1s shedding USC 40-60.

• PEK1s and FBOPs saw increases, while FF1s shed USC 10-15.

• High Grown DUSTs were lower by USC 30, secondary DUSTs increased by USC 6-8, and Low Grown DUSTs gained by USC 12-16.

• All planting districts reported bright mornings with occasional showers, while the Western Region showed a decline in crop intake.

Market Trends and Outlook:

• Demand for South Indian teas increased due to export orders from North Indian exporters, prompting a focus on manufacturing orthodox teas.

• Jakarta experienced strong demand for 7,100 packages, with most orthodox invoices absorbed and prices rising.

• Weather in Java and Sumatra regions was mixed, with sunny mornings and thunderstorms at night, conducive to tea growth.

This summary provides an overview of the key developments and trends in both the CTC and Orthodox segments of the tea market, highlighting price movements, demand patterns, and weather conditions affecting tea production and sales.