Commodities

Traders withdraw offers at Mombasa auction as tea prices falter

tea

A woman picks tea at Embomos in Bomet. FILE PHOTO | NMG

geraldandae

Summary

  • Traders withdrew 2.2 million kilogrammes of tea from the trading floor at the Mombasa auction last week as the price of the commodity continues to falter.
  • The teas that were withdrawn will now be offered for sale in this week’s auction if the prices will be in favour of the traders.

Traders withdrew 2.2 million kilogrammes of tea from the trading floor at the Mombasa auction last week as the price of the commodity continues to falter.

Data from the East Africa Tea Traders Association (Eatta) indicates that out of 10 million kilogrammes of tea that was offered for sale, only 7.7 million kilos were sold with the rest taken out of trade.

The teas that were withdrawn will now be offered for sale in this week’s auction if the prices will be in favour of the traders.

“Out of 151,518 Packages (10,001,403 kilos) available for sale, 116,600 packages (7,755,459 Kilos) were sold with 23.05 percent of the packages remaining unsold,” said Eatta in a market report.

The price of tea at the Mombasa auction declined for the fourth time in a row at the weekly trading. Data from the East African Tea Brokers shows the price dropped to Sh248 in the review period from Sh250 last week.

According to the Tea Directorate, the price decline has been caused by an increase in the supply of the commodity in the market.

“We are witnessing a rise in volumes of tea at the auction and this is what is pushing down the value,” said the directorate. The total volume traded in last week’s sale was 328,319 Kilos more when compared with the previous auction.