Kenyan tea prices fell for the fourth straight week at this week's auction, but there were signs of improving demand, market players said on Wednesday. "Demand showed a slight improvement for the 119,216 packages on offer with prices declining further and some teas remaining unsold," Africa Tea Brokers said in a market report.
Kenya is the world's biggest exporter of black tea and has forecast it will earn a record 50 billion shillings ($633.7 million) from the sector in 2008. Together with tea from the rest of the region, the east African country's harvest is sold through a weekly auction which is held in the port city of Mombasa.
Top BP1s sold at $3.08-$2.50 compared with last week's $3.45-$3.10. Medium quality varieties of this grade sold well while lower qualities eased by $0.10-$0.15, ATB said. Best PF1s fell to $2.40-$1.81 from the previous auction's $2.60-$2.12. ATB said Afghanistan and Egyptian packers were active. Pakistan packers, Kazakhstan and Yemen were fairly active. United Kingdom and Egypt were less active, it said, adding that Russia was quiet during the auction.
COFFEE PRICES FALL: Kenya's coffee prices slid by about $2-$3 compared with the previous sale, despite strong demand across all grades, auction officials said on Wednesday.
"On the whole, the auction levels were down only 2 to 3 dollars amidst strong demand throughout the catalogue," Daniel Mbithi of the Nairobi Coffee Exchange (NCE) said in a market report. He said notable exceptions were the early grade AA lots, which fetched better prices. The auction sold 11,366 50-kg bags.
"Of note were the early main crop AA's which were up significantly trading in the 206 to 210 range," Mbithi said. "This we feel will be the range for Top AA's in the coming main crop season." He said next week's auction would see some fine coffees on offer. Some 11,842 bags 50-kg bags will be offered at the auction.