Weekly Tea Market Report – Week 21

Kenya – Fairly Improved General Demand

Kenya’s auction this week saw better overall demand, especially for quality brokens and dust grades. While 206K packages were on offer (up from last week), about 32% remained unsold, showing selective buying.

• BP1s: KTDA East and West of Rift performed well at firm to dearer levels.

• PF1s: Mixed performance. East of Rift teas saw selective interest, while West of Rift traded easier.

• Dust Grades: Stronger demand, especially from Yemen, Pakistan, and UK. Plainer grades improved with firmer prices.

Weather & Outlook:Heavy rains and cooler nights continue. With long rains underway, volumes are expected to rise, although still below historic averages. Sudan remains absent, keeping overall activity slightly muted.

Malawi – Low Demand

Only selective buying noted; BP1s and Seedling PF1s held previous prices, but PDS/D1s and fannings saw lower interest.Crop Intake: Declining due to seasonal pruning.Outlook: Steady to slightly easier.Weather: Warm and sunny with no new rainfall reported.

Other African Markets

• Uganda: Demand improved but prices varied.

• Tanzania: Steady to easier rates with better activity.

• Rwanda: Strong interest in BP1s and PF1s at firm to dearer levels.

• Burundi: Weak demand due to poor quality and mismatch in price expectations.

Sri Lanka – Fair Demand Despite Quality Gaps

Offering: 7.01 million kgEx-Estate teas saw mixed demand:

• BOPs/BOPFs: Generally easier, except Nuwara Eliya, which saw slight gains.

• Low Grown Teas: Select OP1s dipped significantly (-USC 90), but others gained.

• Premium Teas: Held steady; FBOPs, FF1s and Dusts traded mostly firm.Outlook: Bullish on Orthodox teas with expected return of demand from Iran, Syria, and possibly Russia.

India – Good Demand, Strong CTC Movement

North India: Orthodox teas traded slightly lower due to “banjhi” period; strong anticipation for the second flush.South India:

• CTC Dusts: Easier due to large volumes but mostly sold.

• Orthodox: Better made types held prices; high-grown types traded firm to dearer.Market Sentiment: Remains positive, especially for Orthodox teas.

Indonesia – Good Demand, Waiting for Weather Break

Out of 5,120 packages, only 8% remained unsold.

• Java and Sumatra CTC and Orthodox sold steady to firm.

• Some teabag grades (PF, Dust, D1) sold at dearer levels.Weather: Unusual daily heavy rains affecting quality, despite good crop conditions.

Special Focus: Argentina – Season Ends Quietly

Argentine factories are now closed for maintenance as the season ends.

• Last few months had good weather and improved crop conditions.

• However, lower demand from the US due to economic uncertainty left stocks unsold.Next Season: Starts in October with hopes that inventories deplete by then.

Market Summary – Key Figures

• Kenya Avg Price: USD 1.81/kg (↓7 USC)

• Auction Quantities:

  • Mombasa: 214,059 pkgs

  • Blantyre: 7,020 pkgs

  • Colombo: 12,400 pkgs

  • Kolkata: 102,313 pkgs

  • Guwahati: 96,607 pkgs

  • Jakarta: 4,400 pkgs