Orthodox Leaf Prices Surge at Kochi Auctions Amidst Exporter Activity
In a bustling week at the Kochi tea auctions, orthodox leaf prices saw a significant rise due to low arrivals and heightened export demand, marking a notable shift in the market landscape. Auctioneers Forbes, Ewart & Figgis reported a substantial increase in sales percentage, with an impressive 93% of the offered quantity of 2,10,891 kg in sale no:8 being sold. The surge in prices was primarily driven by active exporters targeting the Middle East and CIS countries, alongside a notable demand from upcountry buyers, painting a picture of a dynamic and vibrant market.
Rising Demand for Whole Leaf, Mixed Fortunes for Brokens
The market for whole leaf varieties experienced a robust performance, with prices holding firm and even trending towards the dearer end of the spectrum. In contrast, brokens exhibited a more irregular pattern, with prices fluctuating and tending towards the lower side. Despite these variations, the overall sentiment in the orthodox leaf segment remained positive, buoyed by the active participation of exporters and upcountry buyers driving the market dynamics.
CTC Leaf Sees Strong Demand, Dust Market Faces Challenges
CTC leaf varieties also witnessed a surge in demand, particularly for brokens and fannings, leading to an uptick in prices. The offered quantity of 29,000 kg garnered a sales percentage of 74, underscoring the robust demand for these varieties. However, the CTC dust market faced challenges, with prices dipping by ₹1-2 per kg, and at times more, owing to subdued demand from loose tea traders and upcountry buyers. The offered quantity of 7,18,866 kg achieved a sales percentage of 79, reflecting a more nuanced picture of the market landscape.
Amidst the positive momentum in the orthodox dust market, which witnessed a 98% sales out of the offered quantity of 8,500 kg, concerns loom over the overall decline in arrivals. Market participants express apprehension regarding the impact of lower crop yields in the high ranges, exacerbated by insufficient pre-summer rains. Despite the firm to dearer trend in orthodox dust prices, the absorption of a small quantity by upcountry buyers and exporters signals a delicate balance in the market dynamics, underscoring the need for cautious optimism moving forward.
In conclusion, the recent fluctuations in orthodox leaf prices at the Kochi auctions offer a glimpse into the intricate interplay of supply and demand dynamics, underscored by the active participation of key market players. As exporters gear up for heightened activity in the coming weeks, and concerns linger over crop yields and arrivals, the tea market stands at a crossroads, poised for further evolution and adaptation to the changing landscape.