Tea Market Report May 11 to May 15, 2009
Markets this week - A mixed selection markets around the globe. Mombasa was mostly easier across the board, except for good medium PF1 and PD. Healthy quantities in auction again and useful rains are reported. However, there are reports that long rains will not last as long this year and with a late start as well, this may put pressure on prices later in the year. We think this is too early to judge and for the short to mid term, prices are likely to come down a little further. Blantyre - steady to easier again this week. Main reasons are the good quantities for this time of the year and a noticeable weaker demand from the UK. Weather is still relatively warm, but crop is declining and some factories have closed for maintenance. General presidential elections are held next week in Malawi and so far, campaigning has been peaceful.
Colombo - most teas in the Highgrown sections came down. Lowgrowns were lower too, except smaller leaf types, which moved up sharply. Quantities are increasing here as well, so we expect this market to gradually come down further, until winter buying kicks in, starting July. Jakarta - this market finally turned as well, with most descriptions coming down, except maybe some Orthodox Brokens. This market is still too high and should come down further. India - weather in Assam is improving and May cropping looks healthy. Prices are up in Kolkatta in line with improving quality and low (earlier) offerings.
North America has been slower around the world while the EU & UK buyers increased momentum in their favoured buying centres. Pakistan packers continued dominant on their WoR KTDA PF1s while there was less enquiry from Afghanistan dealers and Bazaar. Egyptian buyers increased their off-take with prices for their types recovering somewhat. Egyptian government sector lent some interest. Middle East activity in Colombo was mixed. Poland has seen moderate wholesale and retail sales while in Russia, the weather conditions are colder and consumption levels remain unchanged. In north India, useful rain has fallen in all planting districts. In Kenya, the rain continues and green leaf intake levels are steady. EoR temperatures remain moderate while in the WoR temperatures were lower. In Malawi, cold & dry weather prevails, however, crop levels remain good for the time of year. In Sri Lanka, most districts experienced warm and humid weather throughout the week with hardly any rain recorded. Indonesia received a mix of sunshine and heavy rain. Overall crop levels were maintained. China/Vietnam -Cropping has started in full swing. Weather is hot and humid, though Southern Vietnam is getting drier at the moment. Argentina - season is over
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