Commodities

Tea prices surge to four-week high

tea

Tea pickers in Nandi County. FILE PHOTO | NMG

geraldandae

Summary

  • The prices at the weekly auction have been on a downward trend in the last couple of sales due to low demand for the commodity in the world market.

Tea prices at the Mombasa auction rose to a four-week high on improved demand even as the volumes of the commodity offered for sale declined during the Tuesday trade.

Data from East African Tea Traders Association (Eatta) shows a kilo of the beverage rallied to Sh210 this week from Sh205 in the previous sale.

However, the price surge did not help in lowering the volume of tea that was withdrawn at the auction, which went up to 17 per cent from 15 per cent in last week's trading.

“Out of 150,652 packages (9,976,447 kilos) available for sale, 124,670 packages (8,235,418) were sold. 17.25 per cent of the packages remained unsold,” said Edward Mudibo, managing director Eatta.

The volumes of tea at the auction went down from 8.3 million kilos that were offered for sale last week to 8.2 million kilos.

The prices at the weekly auction have been on a downward trend in the last couple of sales due to low demand for the commodity in the world market.