Kenyan tea prices jumped at this week's auction, lifted by strong Egyptian demand and low auction volumes, market players said on Wednesday. "It was a strong market again with most markets active. Prices across the board were higher and most teas sold readily," one player said.
"Egypt was very strong and in some cases, prices went up by about 20 (US) cents for the Egyptian types. Just 4 percent of the 153,504 packages on offer were unsold. Egypt normally buys Pekoe Dusts (PDs) and Dust Ones (D1s). Brighter PDs sold at $1.88-$2.35 per kg from $1.91-$2.09 at last week's sale. Best D1s rose to $2.15-$2.57 from $1.95-$2.59 previously.
Another participant said Pakistan, the biggest buyer of Kenyan tea, was not very active at the sale held on Tuesday. Traders saw prices holding as the market expected lower auction volumes in coming sales. "Crop levels are coming down so it should be a firm market next week," said Naveed Ariff, general manager at Global Tea and Commodities. The east African country, a leading global exporter of black tea alongside Sri Lanka and India, is approaching its coldest season over June-August.