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Conteporary Brokers
Global Weekly Report
Tea market report 13-17 August, 2012

 There was good general demand in most markets around the world. Mombasa was largely dearer with good absorption and reduced out-lots. There was no auction in Malawi this week due to seasonal low quantities. Colombo went dearer for the majority with only the Dust’s easing. The Indonesian auction offerings were 99% absorbed with the small quantities on offer and buyers chasing what little there is. In the North Indian centres, the trend was steady to easier with one of the main packers rather quiet. In the south, the markets were somewhat irregular but there was a good undertow of demand, both export and domestic. There are some bullish factors out there; Pakistan / Afghanistan / Egypt need tea, western packers must be thinking winter, Ramadan about to end. Counter to this, crops, whilst down, are still moderate and have picked up in the past couple of months in India and Kenya. In the immediate future, we expect the market to remain volatile at around current levels. North America has been a little more active whilst UK / EU showed improved though selective interest. There was improved demand from Pakistan packers in Mombasa, while the Bazaar & Afghanistan traders increased their activity and clearly need tea. Egypt maintained their buying in Mombasa although local sales are reported to be slow. Sudan and Kazakhstan were less active in Kenya whilst Yemen and Somalia were busier this week. Russia were strong players in Colombo. In North India one of the main packers was active, one more circumspect and all buyers followed quality closely.

Useful rain continues in North India and July crop is developing well. Kenya is cool & dry with occasional light showers, more in the west than the east; crop is moderate to low. It has been cool and dry in Malawi and leaf intakes remain seasonally low. Bright weather and occasional evening showers in Sri Lanka have led to moderate crop. Indonesia had seen bright conditions in Java with some sun and light showers in Sumatra, crop is low. Vietnam leaf intakes have increased following the rain of last week.

This made us smile:-

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26 Aug, 2012
Acknowledgement: Vanrees & Co

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