Kenyan tea prices firmed at this week's sale and market players expected prices to improve over the next three months as auction volumes drop. The Mombasa-based Africa Tea Brokers said there was good demand for the 130,030 packages offered at the main sale on Tuesday.
"Quality is improving now. We expect prices to continue moving up as farmers will start pruning and quantities will come down," Peter Kimanga, a tea manager at Global Tea and Commodities, said.
Farmers usually prune their bushes over July when the east African producer has its coldest season. Factories are usually under less pressure during the pruning season because they receive fewer green leaf deliveries.
Quantities are expected to rise in October, Kimanga said. Best Broken Pekoe Ones sold at a dearer $2.35-$3.00 per kg compared with $2.32-$2.76 per kg at the previous auction while best Pekoe Fanning Ones changed hands at $1.78-$2.21 from last week's $1.78-$2.06 per kg.
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