Tea Market Report: Week 14 (1 – 5 April 2024)

CTC Segment Highlights:

• Mombasa auction witnessed good demand with increased offerings of 297k packages, resulting in steady absorption and a 9cts gain in the all-average hammer price.

• Flavoury East of the Rift BP1s saw improved demand at firmer rates, supported by multiple buyer regions.

• Weather conditions are conducive for tea growth, with increasing crop intake expected despite the arrival of long rains.

• The upcoming Eid-ul-Fitr celebrations may impact market sentiments as several buyers are expected to close shop temporarily.

• Limbe auction saw good demand, although BP1s traded slightly easier.

Orthodox Segment Highlights:

• Colombo auction recorded decreased offerings, with a lower tendency observed in the market against a strengthening Rupee.

• Better BOPs witnessed a decline in prices, while others showed mixed movements.

• Various grades experienced fluctuations in prices, with some witnessing firmness while others eased.

Upcoming Developments and Concerns:

• With the festive season approaching, smallholders are plucking vigorously, impacting the quality of teas offered.

• Sri Lanka’s Exporters Associations protested the strengthening LKR, citing loss of cost competitiveness.

• Political discussions about estate worker wages indicate potential turbulence ahead.

This comprehensive summary encapsulates the key movements and factors influencing the tea market in both CTC and Orthodox segments, auction outcomes, weather conditions, and upcoming developments, providing stakeholders with valuable insights into the industry landscape.