COMMODITY TRADING

Tea prices rebound at Mombasa weekly auction

This week’s average price increased by Sh8.30 per kilo.

In Summary
  • This week’s average price increased to $2.23(Sh231.32) per kilo compared to last week auction $ 2.15(Sh223.02).
  • In July this year, Kenyan tea fetched the lowest price in five years trading at an average $ 1.76 (Sh182.70) per kilo at the auction.
Sacks of tea for Export at one of the warehouses in Shimanzi,Mombasa. Kenya is one of the leading exporters of Tea/FILE
Sacks of tea for Export at one of the warehouses in Shimanzi,Mombasa. Kenya is one of the leading exporters of Tea/FILE

Tea prices at the Mombasa auction edged up this week giving hope to a possible rebound after suffering a five-year low in July.

This week’s average price increased to $2.23(Sh231.32) per kilo compared to last week auction $ 2.15(Sh223.02), a Sh8.30 rise.

The price rise came amid an increase in volumes traded which closed at 7.7 million kilos, compared to 7.6 million kilos traded in last week’s auction.

In July this year, Kenyan tea fetched the lowest price in five years trading at an average $ 1.76 (Sh182.70) per kilo at the auction.

“Out of 134,918 packages (8,980,000ckilos) available for sale, 116,636 packages (7,786,884 kilos) were sold.  13.55 per cent packages remained unsold,” East African Tea Trade Association market reports notes.

“Pakistan packers showed strong support and were dominant with more and useful interest from Yemen and other Middle Eastern countries. Egyptian packers, Afghanistan, Kazakhstan and other CIS nations lent useful inquiry,” EATTA managing director Edward Mudibo said yesterday.

“ Sudan, UK and Russia were active but selective with Bazaar selective. Iran were subdued. Somalia were more active at the lower end of the market,” he added.

 Kenya Tea Development Agency (KTDA) is on the spot over low bonus payment to farmers this year, which KTDA chief executive officer Lerionka Tiampati has pegged on increased global prices against a depressed market, which has hurt prices.