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Conteporary Brokers
Global Weekly Report
Tea market report 16-20 July, 2012

The markets appeared to be without much direction this week. In Kenya the smaller offering continued to attract reduced interest, BP1 excepted. Malawi is hard to call a market and kept barely steady. Sri Lanka stayed strong and the Indian centers as well as Indonesia, had good sessions. Some top end price levels seem to be unsustainable in the longer term and buyers are showing resistance. Overall however, there seems to be slightly more upward than downward pressure and with world crop lagging behind, we expect the markets to stay quite firm.

North America shows little activity as summer holidays and hot weather are slowing business down. UK / EU operated as before and interest was about maintained. The Pakistan packers were less active and their buying pattern erratic whilst the Bazaar & Afghan jobbers went along but made sure not to push levels north. Egypt buyers were also much less active with hot weather reported and Ramadan imminent. Sudan continued active and clashed with others on occasion. Kazakhstan showed increased appetite and demand was widespread. Yemen continued much the same at reduced prices levels and Somalia operated on the lower end of the market. Russia showed some interest. In North India, the quality is showing a seasonal decline with the monsoon weather conditions being a factor. CTC markets were barely steady but Orthodox continues to perform well. Local blenders are expected to continue buying steadily. The South Indian centres attracted good demand at mostly firm levels.

The monsoon is active in the foothills of the entire Himalayan range whilst in South India the weather is dry and crop moderate. Kenya continues to experience dry and cool weather conditions with some light showers and leaf intake remains low. Malawi is still dry and cool and no sign of any July showers yet. Night temperatures are now at their lowest and crop is minimal. In Sri Lanka most planting districts experienced bright weather with some showers. Crop showed a decline in most areas. In Indonesia overcast conditions prevail with some light showers reported near Bandung. Central Sumatra received useful rain, while Medan stayed mostly dry. Crop is low. Vietnam has been hot and humid. The third plucking round has been disappointing and the quantity is behind expectations.

This is quite true:

“The mind is like a parachute. It doesn’t work unless it’s open.”

25 Jul, 2012
Acknowledgement: Vanrees & Co

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