AUSTIN BEYADI, 8th February 2010 @ 11:00, Total Comments: 0, Hits: 650
WHILE Tanzania, Africa's fourth largest tea producer, predicts a 9.4 per cent increase in crop yields, tea prices continue dwindle for three consecutive weeks at the Mombasa Tea auctions.
The auctions, held on the January 25 and 26, this year, saw a drop in the top prices for 21 grades of tea as African tea prices fell by 3.9 per cent last week to USD 2.98 a kilogram.
Of the 8.62 million kilos of tea offered at the auction, 7.83 million kilos were sold.
Kenya was the largest contributor at the auction with 6.69 million kilos of black tea on offer at the sale and managed to sell 6.10million kilos.
According to the Auction Report by the African Tea Brokers, Tanzania offered the market 269,435.40kilos of tea and managed to sell187,823.40 kilos at an average price of USD 2.06 per kilo.
Fairly good demand prevailed for the 136,391 packages (8.63 million kilos) on offer at irregularly easier rates with many more teas remaining unsold at a rate of 17.01 per cent.
Despite the price drops, the amount of tea on offer at the auction was up on the same period of the prior year a good indication as weather patterns severely affected production output across the global in 2009.
Offerings this week totaled 136,391 packages (8,626,547.90 kilos) against 107,500 packages (6,772,901.00 kilos) for the same period last year.
Brighter BP1s were a weak feature and saw price declines of between USC20 to 76 while mediums were discounted by USC40 to 60 but a few well made lines were steady.
Lower mediums met better enquiry and were irregular varying between USC28 easier to dearer by up to USC7 for a few invoices.
Plainer BP1s were well absorbed at USC7 to 13 below last prices. Brighter PF1s eased by USC22 to 26 while mediums lost USC13 to 20; lower mediums were about firm to USC22 easier. Plainer descriptions shed USC19 to 38.
Yemen and other Middle Eastern countries and Sudan showed more interest while Pakistan Packers maintained activity with more enquiries from Afghanistan but at lower levels.
Egyptian Packers and Kazakhstan (CIS) maintained activity at lower prices while Russia was operating.
The UK showed less and selective interest and the Bazaar was subdued. Somalia was operating at the lower end of the market.
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