Tea prices drop at Mombasa auction

Tea prices at Mombasa auction, the world’s largest black tea auction, eased at this week’s sale on a slight drop in demand despite continued decrease in the volumes offered. The prices dropped by 2.9 per cent to $3.03 (Sh304.21) per kilogram this week, down from $3.12 (Sh313.25) per kg in last week’s auction.

Despite the marginal drop, the prices were still better compared to same period last year when the leaf traded at an average $2.11 (Sh212) per kg calculated on the current exchange rate of 100.50 to a dollar.

The volumes offered drop by 29 per cent to 5,148,900 kilos sold this week from 7,239,077 Kgs in the similar period last year. East Africa Tea Trade Association (EATTA) says the volumes are unlikely to rise to the same levels recorded last year. Kenya’s CTC (crush-tear-curl) grade leaf sold at $3.34 (Sh335.67) which is Sh10 dearer compared to last week’s sale (26). Last week the country’s tea prices dropped marginally by Sh6 from $3.41 (Sh337.59) it sold a fortnight ago in (sale 25) to $3.33 (Sh329.67) in last week’s (sale 26) but this week it continued with its upward trend selling at Sh335.67.

Local producers offered slightly over 4.5 million kilos down from 5.2 million kilos. According to EATTA the drop in volumes is due to the early start of the cold season in tea growing areas.