A Review Of The Kenya Crop & The Mombasa Market: August, 2010

	O F F E R E D		S O L D*		AVERAGE
2 0 1 0	Packages	Kilos	Packages	Kilos	US$
Kenya	296,351	19,525,882.20	268,107	17,602,080.20	$2.77
Uganda	109,908	5,973,595.50	93,199	5,038,490.00	$1.60
Rwanda	23,860	1,498,774.80	20,280	1,269,749.50	$2.13
Madagascar	40	2,308.00	40	2,308.00	$2.00
Tanzania	26,921	1,289,676.50	22,876	1,073,816.00	$1.29
Malawi	4,080	192,204.00	3,960	186,456.00	$1.06
D R of Congo	480	27,897.00	320	18,593.00	$1.22
Mozambique	6,762	345,347.00	4,103	202,933.00	$0.94
Burundi	12,330	732,991.00	11,550	684,173.00	$1.94
TOTAL	480,732	29,588,676.00	424,435	26,078,598.70	$2.40
2 0 0 9	Packages	Kilos	Packages	Kilos	US$
Kenya	217,942	14,246,887.00	206,025	13,497,917.50	$3.05
Uganda	67,903	3,939,996.50	62,265	3,612,601.50	$2.13
Rwanda	15,530	952,873.00	14,299	880,584.50	$2.88
Madagascar	340	20,000.00	340	19,980.00	$1.87
Tanzania	9,960	475,650.50	8,780	410,397.50	$1.43
Malawi	1,620	81,796.00	1,100	50,916.00	$1.30
D R of Congo	377	24,485.00	220	14,328.00	$1.99
Mozambique	4,916	252,269.00	4,300	215,814.50	$1.38
Burundi	7,340	440,496.50	6,780	400,318.00	$2.64
TOTAL	325,928	20,434,453.50	304,109	19,102,857.50	$2.80

(Incl of outlots from previous sales)

The crop figure for the month of July, 210 has not yet been released by the Tea Board of Kenya.

KENYA: West of the Rift Kericho – Received well-spread scattered showers through the month and some hail damage was reported in some estates in the second week. Buret, Bomet, Nyamira, Gucha, Kisii and Sotik recorded more rainfall of 39.5mm in the second week while Nyamira, Gucha, Kisii and Sotik received 38.4mm. In the third week Nyamira, Gucha, Kisii and Sotik saw less precipitation of 27mm while Buret and Bomet had 20.2mm rainfall; conditions improved the following week with rainfall of 31.3mm reported while Kisii districts and Sotik received 17mm. Rainfall waned in the final week in Buret and Bomet but Sotik, Kisii and Gucha recorded some rainfall with Nyamira reporting 17.6mm. Colder temperatures were experienced averaging maximum 21°C and minimum 11°C. Nandi – Reported moderate rainfall with widespread showers experienced in the first week but drier conditions were recorded in the last fortnight; some rainfall was received in the last weekend of the month. Temperatures averaged at maximum of 23°C and minimum of 10°C. East of the Rift – Continued to record very cold conditions with well-spread scattered showers but drier conditions were experienced in the first and last weeks. Temperatures averaged at 21°C.

Crop levels declined due to seasonally colder conditions in most tea growing areas but Nandi showed a slight increase in the last fortnight while West and East of the Rift recorded an increase in the final week.

EAST USAMBARAS – TANZANIA: Drier weather conditions were reported with scattered showers only received in the first week. Temperatures were averaging at maximum 29°C and minimum 14°C. Maintained crop levels.

WESTERN UGANDA: All tea growing areas of Western Uganda recorded useful rainfall at the beginning of the month which waned towards the end of the month. Fort Portal recorded 56.2mm while Hoima reported 26.2mm but Kibaale and Bushenyi saw only scattered showers in the first week. Hoima, Fort Portal and Kibaale reported lower rainfall averaging 8.6mm with Bushenyi dry the following week. There was more rainfall in the third week of 42.2mm, 28mm and 27.1mm in Fort Portal, Bushenyi and Hoima but only widespread showers were experienced in all the districts in the fourth week with Fort Portal dry. Rainfall in all the areas averaged 14mm to 21mm. Temperatures of maximum 31.8°C and minimum 15°C were exprienced. Crop levels declined.

Five sales were held during the month where a total of 424,435 packages were sold at an average price of US$2.40. Comparative figures for the same month last year were 304,109 packages sold at an average price of US$2.80.

With much lower quantities and much improved quality, the market continued quite buoyant with brisk competition from most market destinations in the first two auctions. Thereafter demand declined with withdrawal of interest from major operators although volumes were at the lowest in the final two weeks.

Much stronger demand prevailed for the 7,080,462 kilos (115,034 packages) on offer at dearer rates in the first sale. Brighter BP1s were well competed for at USC16 to 28 dearer while mediums were well absorbed at USC10 to 20; lower mediums saw better enquiry gaining USC2 to 24. Plainer sorts met improved interest at USC2 to 15 dearer. Brighter PF1s were a strong feature appreciating by USC21 to 22 while mediums met improved interest at USC12 to 20 dearer; lower mediums opened USC18 dearer and appreciated by upto USC28 by the close. Plainer descriptions were USC15 to 30 above last prices. Brighter PDUSTs were well absorbed at USC7 to 14 dearer while mediums held firm to USC22 dearer; lower mediums saw price increases of between USC22 and 28 above last levels. Plainer types gained USC12 to 24. Brighter DUST1s were firm to USC10 dearer while mediums were irregular and ranged between USC4 to 20 dearer for clean neat sorts to easier by USC2 to 9; lower mediums were well competed for at USC20 to 28 dearer. Plainer teas were USC10 to 28 above last prices.

Strong general demand for the 6,417,401 kilos (104,174 packages) on offer at much dearer levels closely following quality but a few more teas remained unsold (11.20%) in the following sale.Brighter BP1s met better support gaining USC2 to 44 with mediums well competed for and appreciated by USC12 to 25; lower mediums were irregular ranging between USC20 dearer to easier by upto USC14. Plainer types saw an irregular enquiry varying between USC3 to 15 easier to dearer by upto USC25 for improved lines. Brighter PF1s were a strong feature and gained USC23 to 46 while mediums met improved interest at USC10 to 40 dearer; lower mediums saw better absorption at USC4 to 24 dearer. Plainer descriptions were rather irregular and varied between USC6 to 25 dearer to easier by upto USC10 with some lines remaining unsold. Brighter PDUSTs met good interest appreciating by USC16 to 35 while mediums were a strong feature gaining USC20 to 38. Lower medium PDUSTs were USC16 to 30 dearer while plainer sorts were irregular with the plainest losing upto USC13 but clean coloury types were upto USC28 dearer. Brighter DUST1s were irregular ranging between USC6 to 24 dearer to easier by upto USC4 while mediums were well competed for at USC8 to 40 above last levels; lower mediums were a strong feature at USC18 to 24 dearer. Plainer teas varied between USC12 to 20 dearer to easier by upto USC30.

Much stronger demand prevailed for the 5,898,342 kilos (95,771 packages) on offer at substantially dearer levels in the third sale of the month. Brighter BP1s met strong enquiry at USC12 to 26 dearer while mediums were better absorbed at USC5 to 16 above last levels; lower mediums saw an irregular interest ranging between USC10 easier to dearer by upto USC30 and more for improved well made types. Plainer descriptions were about firm to USC8 dearer. Brighter PF1s were well competed for at USC11 to 28 dearer while mediums were a strong feature at USC12 to 34 above last prices. Lower mediums were USC6 to 35 dearer while plainer sorts gained USC5 to 18. Brighter PDUSTs were well absorbed at USC12 to 28 dearer but a few lines lost upto USC2 while mediums were a strong feature appreciating by USC18 to 34; lower mediums were USC16 to 35 dearer. Plainer types were USC13 to 34 above last prices. Brighter DUST1s were well competed for, opening at USC11 dearer and subsequently gained upto USC26 with mediums USC6 to 35 dearer; lower mediums appreciated by USC16 to 36. Plainer teas were USC15 to 36 above last levels.

Less general demand for the 5,287,792 kilos (85,125 packages) on offer closely following quality but prices declined as the sale progressed with many teas remaining unsold (30.89%) in the following sale. Brighter BP1s were well absorbed gaining USC2 to 62 but a few lines eased by USC5 to 22 while mediums met improved competition and appreciated by upto USC4 to 56 for improved lines but a few invoices shed upto USC4. Lower medium BP1s saw better absorption at firm to USC20 dearer but poorer lines were discounted by upto USC25 while plainer descriptions held firm to USC10 easier but a few improved invoices gained with make. Brighter PF1s were a weak feature declining by USC8 to 36 with some lines unsold while mediums were irregular ranging between USC2 to 11 easier to dearer by upto USC4 for improved invoices; lower mediums saw irregular absorption varying between USC6 to 40 dearer to easier by upto USC15. Plainer types were USC4 to 50 easier with many lines remaining unsold but improved coloury sorts were irregularly dearer by upto USC40. Brighter PDUSTs were a strong feature and gained USC6 to 24 while mediums met strong interest opening at USC23 dearer and closed upto USC8 above last prices; lower mediums were discounted by USC6 to 20 easier. Plainer sorts were barely steady to USC20 easier with many lots remaining unsold. Brighter DUST1s saw an irregular demand and ranged between firm to USC4 dearer to easier by upto USC18 while mediums were irregular varying between firm to USC4 dearer to easier by USC3 to 5 with many more lines remaining unsold; the few available lower mediums lost USC10 to 20. Plainer teas were barely steady to USC28 below last prices.

There was fair general demand for the 4,904,675 kilos (80,628 packages) on offer at irregular rates closely following quality with many teas remaining unsold (24.68%) in the last sale of the month. Brighter BP1s saw less interest easing by USC17 to 65 while mediums were discounted by USC10 to 50; lower mediums met better enquiry at firm to USC40 easier. Plainer sorts were a weak feature opening at USC10 dearer but closed at firm to USC50 lower with many teas remaining unsold. Brighter PF1s saw an irregular interest ranging between USC20 dearer for improved invoices to easier by USC8 to 10 while mediums were well competed for and improved coloury lines gained USC8 to 15 but others were irregularly easier by a similar margin; lower mediums were irregular ranging between USC5 to 30 below last prices to dearer by upto USC28. Plainer types varied between USC40 easier to dearer by upto USC30 for a few improved invoices. Brighter PDUSTs were generally firm to USC14 dearer but a few lines lost upto USC10 while mediums were a weak feature and shed USC6 to 22 with a few selected clean teas USC6 to 7 dearer. Lower medium PDUSTs were discounted by USC15 to 22 while plainer descriptions were a weak feature at USC8 to 40 below last levels. All categories of the few available DUST1s were a weak feature. Brighter sorts lost USC10 to 17 with many lines remaining unsold while mediums were USC2 to 5 easier with some lines unsold; lower mediums shed USC10 to 22. Plainer teas were about firm to USC40 lower.

In the secondary auctions BPs showed irregular but dearer tendencies especially well made clean were easier in the third week. PFs reflected similar trends but were irregular in the second auction. Clean well sorted coloury Fannings appreciated while similar Dusts were much dearer in the first three auctions but thereafter were unsteady and declined in the last week. Other Fannings opened strong but weakened in the last fortnight. BMFs were easier at the start of the month but were subsequently well absorbed at firm levels.

Pakistan Packers were dominant while Egyptian Packers lent strong support in the first three auctions but thereafter showed less activity with Kazakhstan, Yemen and other Middle Eastern countries maintaining interest and lent strong competition in Sale 33 while Sudan maintained activity. UK showed more enquiry but was selective with Afghanistan lending strong support in the first two weeks but was quiet in the remaining period. Bazaar was subdued only showing some activity in Sale 31 with more enquiry from Russia in the first two sales of the month but interest waned in the third week and did not operate in the closing sale. Iran showed some interest only in Sale 32. Somalia was operating at low levels at the bottom end of the market.

C T C QUOTATIONS – Opening (italics) & Closing Sales

CATEGORY	BP1 – USC		PF1 – USC		PDUST – USC		DUST1 – USC
Best	290–400	312–370	278–309	312–340	262–302	324–354	273–322	300–308
Good	290–316	312–345	290–298	314–330	283–300	328–346	278–304	300–306
Good Medium	270–310	297–316	262–282	312–344	262–286	300–344	256–292	300–306
Medium	270–298	298–325	240–270	292–325	250–275	317–334	254–272	300–318
Lower Medium	170–264	196–270	190–228	190–260	240–262	250–270	210–264	260–266
Plainer	110–180	100–184	105–230	090–236	108–248	100–254	150–258	130–254

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