Kenyan tea prices continued to ease on quality at this week's auction and many buyers kept away as they expected a rise in deliveries to weigh on prices at coming auctions, traders said.
Heavy rainfall has fallen in growing areas in recent weeks, which is expected to boost output.
"There is a lot of rain upcountry and the perception among buyers it that there will be a larger crop coming forward," an official at Africa Tea Brokers (ATB) said.
"This week has seen progressively lower quality. The market has gone down quite significantly and only good teas have held up well."
Prices for Kenyan tea have been strong since January but traders expect coming auctions to bring weaker prices.
"For the moment, the bubble has burst as far as the market is concerned. We have had a good market despite the quantities but I doubt we will see the prices that we have been having," the ATB official said.
The official said there was less demand from Pakistan and that the UK had been very selective.
ATB said 8.27 percent of the 115,009 packages, or 7.4 million kg, offered had no buyers.
Best Broken Pekoes Ones (BP1s) fell to $2.47-$2.52 per kg, from $2.54-$2.63 at last week's auction. Best Pekoes Fannings Ones (PF1s) traded at $1.80-$2.00 from $1.80-$1.96 per kg at the previous auction.
Another 113,054 packages, or 7.3 million kg, will be on sale at next Tuesday's auction.
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