Market Report - Week 20 (13 – 17 May 2024)

CTC Segment Highlights:

• Mombasa auction saw fair demand with an all-average hammer price increase of 7cts to USD 2.09/kg, but 55% of teas remained unsold.

• Flavoury BP1s saw increased appetite but traded easier; KTDA WoR BP1s sold at reserve prices.

• Medium BP1s had firm demand at irregular rates, while plainer types saw less demand at easier rates.

• KTDA PF1s met good demand but at lower levels; KTDA WoR PF1s traded firm with some invoices dearer.

• Medium PF1s met good demand at dearer rates, with interest from Pakistan and UK; plainer types traded at irregular rates.

• KTDA PDs traded easier, KTDA WoR PDs firm, and mediums and plainer types varied from steady to dearer.

• Weather conditions are seasonally normal with rainfall and increasing day temperatures. Crop intake remains stable.

• Auction quantities are volatile, with next week seeing a significant increase due to KTDA reprints, which are expected to sell at lower prices.

• Limbe auction had subdued demand, with only 24% of teas sold. Weather is warming, with crop intake declining as producers begin pruning.

• Jakarta CTC teas sold at steady to firm rates.

• Kolkata auction saw good demand for well-made teas, with best Assam brokens selling at firm to dearer rates.

• Guwahati auction met good demand, with well-made teas selling firm and others trading irregularly.

Orthodox Segment Highlights:

• Colombo auction offered 5.50 Mn kgs, with strong demand across all categories.

• Better BOPs declined by USC 15-30, while below best and others were firm.

• Select best BOPFs declined by USC 30, below best were firm, and others gained USC 10-15.

• Nuwara Eliya BOP/BOPFs were firm, and Uva BOP/BOPFs maintained.

• FBOPs gained USC 15-30, better FF1s gained USC 15-30, and bottom end teas were dearer by USC 15.

• Better OP/OPAs were firm, while others gained USC 10-15 as the sale progressed.

• PEKs gained USC 30, better FBOPs were firm, and others gained USC 15-20.

• FF1s were dearer by USC 15, and FFs gained USC 20.

• BOP/BOPF strengthened by USC 10-20, with Premium very tippy teas in good demand.

• Better FGS1 gained USC 10-15, others appreciated by USC 10, and FNGs were dearer by USC 5-10.

• High grown dusts were dearer by USC 5-10, secondary dusts increased by USC 5-10, and low grown dusts gained by USC 10-15.

• Bright mornings and evening showers were reported across all planting districts. The Western, Nuwara Eliya, Uva, and Udapussellawa regions maintained crop intake, while Low Grown region reported an increase.

• Sri Lanka experienced heavy showers, a welcome change from previous extreme heat, expected to boost crop by mid-end June.

• Jakarta saw strong demand for 8,100 packages with only 2% unsold. Market trends for Java/Sumatra Orthodox teas continue to rise.

• Sunny and hot weather in Java followed by short rains; North/West/South Sumatra had heavy rains with occasional short rains in the south.

• Kolkata experienced pre-monsoon showers, with satisfactory crop outturn except in a few North Bank districts. April crop in North India estimated to be +10%, partially offsetting March deficits.

This summary provides a concise overview of the key developments and trends in both the CTC and Orthodox segments of the tea market, focusing on price movements, demand patterns, and weather conditions affecting tea production and sales.