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Global Weekly Report
Tea market report 17-21 September, 2012

There was good demand overall with most markets showing some volatilty. Colombo and Indonesia advanced while Mombasa was irregular and demand was very grade specific. Blantyre received less interest for most types which led to an easier market, with only the special cultivars and offgrades attracting more demand at dearer rates. Good inquiry from the internal market led to mostly dearer prices in South India. In North India, Kolkata witnessed more demand than Guwahati but both eased for most teas by the close. We expect the markets to continue the existing pattern of erratic demand, with CTC possibly having a slight downside bias. Orthodox demand looks pretty solid at the moment with the limited offerings in South India, Vietnam and Indonesia. In broad terms, the market looks fairly neutral without any strong upside or downside factors.

The Tea Convention in North America was a success with many participants who will surely now be pondering the upcoming Argentine season. UK/EU maintained their support in their favoured centres. Pakistan packers continued to be ready buyers in Mombasa but Afghanistan traders were uncertain and selective. We saw reduced demand from Egypt in Mombasa whilst the horn of Africa went on buying tea. Russia was more active in Colombo, continuing their winter buying programme. One of the main packers in North India was very active whilst the other operated selectively.

The crop levels in Kenya marginally improved with a mixture of both wet and dry weather conditions. Overall bright weather in Sri Lanka with harvest for the low grown tea increasing, Westerns declining and others maintained. It is still hot and dry in Malawi and crop intakes dropped further. The Monsoon is almost over in North India but growing conditions are good although quality is now showing autumnal characteristics – thinner, green liquors and dull infusions. Most planting areas in Java report short but heavy showers, while Sumatra had cloudy conditions and overall crop is still low in Indonesia. Cooler weather has arrived in Vietnam but crop reports are quite positive.

Here is some useful advice…:-

“To be sure of hitting the target, shoot first. And, whatever you hit, call it the target.”

23 Sep, 2012
Acknowledgement: Vanrees & Co




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