A Review Of The Kenya Crop & The Mombasa Market: December, 2008

 

 

O F F E R E D

S O L D*

AVERAGE

2 0 0 8

Packages

Kilos

Packages

Kilos

US$

Kenya

371,680

24,403,766.00

359,818

23,761,487.50

$1.87

Uganda

78,264

4,692,290.50

74,685

4,472,722.50

$1.32

Rwanda

29,280

1,894,662.00

26,040

1,691,661.50

$1.81

Madagascar

20

1,184.00

20

1,184.00

$1.32

Zambia

-

-

-

-

-

Tanzania

24,457

1,307,700.80

22,041

1,160,853.30

$1.23

Malawi

2,197

107,935.50

2,117

103,743.50

$1.15

D R of Congo

800

43,604.00

800

43,604.00

$1.12

Mozambique

-

-

-

-

-

Burundi

7,060

432,528.50

6,580

403,296.00

$1.65

TOTAL

513,758

32,883,671.30

492,101

31,638,552.30

$1.76

 

2 0 0 7

Packages

Kilos

Packages

Kilos

US$

Kenya

287,653

19,122,383.00

280,794

18,686,629.50

$1.85

Uganda

50,695

3,073,738.50

48,935

2,969,645.50

$1.42

Rwanda

13,960

921,630.50

12,800

847,622.00

$1.88

Madagascar

160

8,924.00

160

8,924.00

$1.46

Zambia

-

-

-

-

-

Tanzania

20,780

1,099,538.50

20,000

1,058,019.00

$1.22

Malawi

1,780

95,612.00

1,580

82,500.00

$1.07

Ethiopia

-

-

-

-

-

D R of Congo

1,312

66,926.00

1,218

61,971.00

$0.82

Mozambique

500

25,312.00

500

25,112.00

$1.09

Burundi

4,130

253,656.50

3,690

230,109.50

$1.52

TOTAL

380,970

24,667,721.00

369,677

23,970,532.50

$1.76

 (Incl of outlots from previous sales)

 

The crop for the month of November, 2008 has been announced at 34,405,579 kgs showing an increase of 2,069,428 kgs (6.40%) over the same month in 2007. The cumulative figure now stands at 307,895,145 kgs – 32,879,392 kgs (9.65%) below the similar period last year.

 

KENYA:  West of the Rift Kericho, Buret, Bomet, Gucha, Nyamira, Kisii and Sotik saw less precipitation during the month with only scattered showers reported in the second week with temperatures averaging maximum 23°C and minimum 10°C in the first three weeks but rose to maximum of 24°C and minimum of 10°C in the last week. Nandi also reported drier warmer conditions with less rainfall although a few scattered showers were also experienced in the second week; temperatures averaged maximum 25°C and minimum 10°C in the first three weeks with a maximum of 27°C and minimum of 10°C in the final week. East of the Rift reported scattered showers but with drier weather throughout the month and temperatures averaged at 21°C .Crop continued to decline but showed a slight improvement in West of the Rift, Kericho in the last two weeks.

 

EAST USAMBARAS – TANZANIA:  Dry conditions were recorded with only scattered showers in the first three weeks with temperatures averaging at maximum of 31°C and minimum of 12°C in the first fortnight dropping down to maximum 30°C and minimum 9°C and maximum of 30°C and minimum of 15°C in the last two weeks respectively. Crop declined with only a slight increase recorded in the first week.

 

WESTERN UGANDA:  Mixed and drier weather reported in all districts during the month with Fort Portal, Hoima and Kibaale recording dry conditions in the first week and some scattered showers were received in Bushenyi. There was scattered showers in Hoima, Kibaale and Fort Portal with useful rainfall of 61mm in Bushenyi in the second week and temperatures averaged maximum 30°C and minimum 14°C in the first fortnight; Kibaale and Fort Portal recorded more precipitation of 30mm and 19.5mm respectively but Bushenyi and Hoima received only scattered showers with temperatures of maximum 29°C and minimum 12°C the following week. All tea growing areas reported scattered showers in the last week with temperatures averaging maximum 30°C and minimum 14°C. Crop continues to decline.

 

The prevailing strong demand was the result of the re-entry of some markets which had not participated during the previous month due to high prices on most categories on offer. The general weather patterns predicting drier conditions have indicated dropping crop levels in most tea growing areas in the region which also played a part in attracting competition.

 

Four sales were held during the month where a total of 492,101 packages were sold at an average price of US$1.76. Comparative figures for the same month last year were 369,677 packages sold at an average price of US$1.76.

 

In the first sale of the month demand improved further for the 144,743 packages (9.29 million kilos) on offer at irregular rates closely following quality. Brighter BP1s were a strong feature gaining USC2 to 18 but a few lines lost upto USC20 with declined quality while mediums met better enquiry gained upto USC14 but a few invoices eased by upto USC5; lower mediums were fairly well absorbed at steady levels to USC12 easier with some lines withdrawn. Improved plainer types were barely firm but others eased by upto USC12 with many lines remaining unsold. Brighter PF1s met good enquiry and appreciated by USC2 to 18 with mediums irregular ranging between USC2 to 14 dearer for improved coloury sorts to easier by upto uSC12 for poorer teas while lower mediums were USC5 to 7 dearer. Plainer descriptions were firm to USC16 above last levels. Brighter PDUSTs saw improved enquiry at USC5 to 12 dearer but a few lines eased by upto USC16 while mediums were fully firm to USC14 dearer with improved interest for lower mediums which gained USC2 to 11. Plainer types were dearer by USC3 to 12 at the opening closing at firm to a few cents dearer. Brighter DUST1s appreciated by USC2 to 12 with mediums firm to USC12 above last levels while lower medium sorts were well absorbed gaining USC5 to 10; plainer teas opened at USC2 to 10 dearer closing at fully firm rates.

 

The 125,135 packages (8.02 million kilos) on offer received a very strong improved demand which appreciated as the sale progressed in the next sale. Brighter BP1s met useful enquiry gaining USC6 to 36 with mediums well competed for at USC3 to 22 dearer while lower mediums were difficult of sale and eased by USC2 to 9. Plainer descriptions were however well absorbed at firm levels with some lines remaining unsold but well made sorts were upto USC6 and more dearer. Brighter PF1s saw an irregular interest ranging between USC8 to 20 dearer for improved invoices to easier by upto USC15 while medium PF1s were a strong feature appreciating by USC8 to 16; lower mediums were well supported opening at firm to USC8 dearer and closed upto USC30 above last prices. Plainer types were USC5 to 8 dearer at the start but closed USC2 to 13 higher. Brighter PDUSTs were a strong feature gaining USC5 to 21 with mediums well competed for at USC10 to 29 dearer; lower mediums saw better absorption gaining USC6 to 20. Plainer teas were irregular with improved lines upto USC15 dearer but poorer types lost upto USC8. Brighter DUST1s appreciated by USC14 to 22 while mediums saw improved competition gaining USC9 to 20 with lower mediums well absorbed at USC12 to 18 dearer. Plainer DUST1s were irregular with poorest teas upto USC8 easier but coloury lines gained upto USC17.

 

Strong demand prevailed for the 119,574 packages (7.6 million kilos) on offer in the following sale. Brighter BP1s met a strong enquiry and appreciated by USC2 to 24 with the best substantially dearer while mediums were USC2 to 20 above last levels but a few lines lost upto USC4; lower mediums saw better enquiry and were well absorbed at USC5 to 22 dearer. Plainer categories held about firm to USC12 dearer but poorer sorts declined by upto USC3 with some lines remaining unsold. Brighter PF1s were a strong feature gaining USC2 to 16 but a few lines eased by USC3 while mediums met good competition at USC13 to 36 dearer; lower medium PF1s were irregular with improved lines gaining upto USC26 but others eased by upto USC12. Plainer types were well absorbed at USC8 to 30 dearer. Brighter PDUSTs saw useful interest at USC9 to 20 dearer while mediums met strong competition appreciating by USC10 to 25; lower mediums gained USC3 to 24 above last prices. Plainer description were USC10 to USC28 and more dearer. Brighter DUST1s were well absorbed at USC10 to 22 dearer while mediums were USC15 to 23 above last levels with lower mediums upto USC18 dearer. Plainer sorts gained USC12 to 30.

 

In the final sale of the year very strong demand was maintained for the 124,306 packages (7.93 million kilos) on offer. Brighter BP1s were irregular ranging between firm to USC7 dearer for improved well made types but others eased by upto USC10 while mediums were a strong feature gaining USC6 to 20; lower mediums were firm to USC16 above last prices. Plainer sorts held fully firm to USC10 dearer on last. Brighter PF1s were well competed for appreciating by USC15 to 20 while mediums were a strong feature gaining at USC4 to 20; lower mediums were irregular with improved coloury sorts upto USC18 dearer but others lost upto USC6. Plainer teas held firm to USC8 above last prices. Brighter PDUSTs were a strong feature gaining USC12 to 28 with mediums well competed for and were even stronger at USC25 to 32 dearer. Improved lower mediums gained upto USC36 but others declined irregularly while plainer types were dearer by upto USC30 but a few poorer teas lost upto USC7. Brighter DUST1s were well absorbed at USC7 to 24 dearer with mediums a strong feature appreciating by USC17 to 28; lower mediums met strong competition at USC30 to 40 above last levels. Plainer descriptions were about firm to USC34 dearer.

 

In the secondary catalogues all BPs were weak in the first sale but subsequently firmed and closed dearer with PFs generally irregular although coloury clean sorts were well absorbed in the first week; all categories appreciated in subsequent sales. Well sorted clean coloury Fannings were irregular gaining only in the third week with Dusts a strong feature and were substantially dearer in the last three auctions. Other Fannings were well absorbed at dearer levels but eased in the first sale; similar Dusts gained. BMFs were well absorbed.

 

Egyptian packers were dominant with very strong support from Afghanistan and Kazakhstan while Yemen and other Middle Eastern countries lent more enquiry with strong activity in the last two weeks. Pakistan Packers and the Bazaar showed more support in the first two auctions closing the last fortnight with strong interest although Pakistan was less active in the opening sale. The UK was selective in the first week maintaining the same tendencies in the next two weeks but with more activity and was very active in the closing sale. Support from Sudan was maintained in the first week, subsequently showing more activity and was strong in the final sale with Egyptian Government Sector operating but was quiet in Sale 49. There was good support from Russia while Somalia was very active throughout the month.

 

 

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

CATEGORY

BP1 – US$

PF1 – US$

PDUST – US$

DUST1 – US$

Best

236–260

270–315

192–266

236–262

181–200

200–246

182–218

224–242

Good

202–242

210–266

188–200

230–242

166–182

210–238

169–190