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Conteporary Brokers
Global Weekly Report
Tea market report 23-27 July, 2012

There was a good measure of volatility in the markets this week, which started with Mombasa showing an easier
trend overall. Blantyre showed quite the opposite tendency and continued very strong on the back of specific
demand from a UK packer. Colombo, like Mombasa, slipped for the main weight with noticably less demand from
sectors of the Middle East. Jakarta was another slightly lower session for orthodox but there was improved interest
for CTC. The North Indian centres met with better demand and prices nudged slightly north whilst the southern
auctions went stronger for orthodox but irregular for CTC. So, in summary, no overall trend or direction but in
broad terms, fairly good demand. Reporting all this is the easy bit, the trickier bit is forecasting the upcoming
trend. This week, however, isn’t one of the more difficult ones when it comes to guessing the immediate outlook;
we see some downside for all the markets; a bit of a summer lull. In the medium / longer term, trigger prices will
be hit and prices will bounce.

North America is rather quiet on the back of summer holidays and hot weather whilst UK / EU operated as before
and interest was about maintained. The Pakistan packers were more active in Mombasa with the Bazaar & Afghan
jobbers rather circumspect and selective. Egypt buyers were also much less active with hot weather and holidays
intervening. Sudan continued active and competed strongly for quantity on the better sorts. Kazakhstan showed
increased appetite and demand was widespread. Yemen continued much the same and Somalia were busy at the
lower end of the market. Russia were moderate buyers in Colombo. Packers and traders In India showed more
interest and gave a shove to prices for the medium types.

The monsoon continues in North India with flooding in some areas whilst in South India the weather has brought
monsoon rain but, so far, in insufficient quantity. Kenya continues to experience dry and cool weather conditions
with some light showers and leaf intake remains low. Malawi is still dry but there are signs of cloud build-up and
crop, whilst seasonally low, is perhaps a little better than forecast. In Sri Lanka most planting districts experienced
bright weather with some evening showers. Crop showed a decline in most areas. In Indonesia dry conditions
prevail in Java with some showers in Sumatra; crop is low. Vietnam has been wet but crop still remains behind

Try this:-

“82.8% of all statistics are made up on the spot.”

04 Jan, 2012
Acknowledgement: Vanrees & Co

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