Kenyan tea prices were mixed at this week's auction with some top grades firming as others slipped, weighed down by sluggish demand on the back of the global economic slump, traders said on Wednesday. Mombasa-based Africa Tea Brokers (ATB) said 118,381 packages (7.76 million kg) were offered at the sale with 25.98 percent remaining unsold.
The amount of unsold tea was much higher than last week's auction when 15.14 percent was left. Best BP1s sold at $3.50-$3.10 compared with $3.40-$3.10 at last week's auction. Top PF1s fetched $2.70-$2.52 down from $2.98-$2.58 previously.
Kenya's government expects the global slump to curb earnings from exports such as tea this year, slowing growth in the region's largest economy. Kenya is the world's biggest exporter of black tea. Several traders said a lack of financing had pushed some major buyers to cut back on their take-up rate.