Drought fear lifts tea prices at Mombasa
Mombasa. Panic-buying at the Mombasa auction last week marginally lifted tea prices as traders rushed to purchase more of the commodity in anticipation of a shortage in supplies in the coming days as a result of the ongoing drought.
Tea traders at the auction have anticipated prices at the weekly auction will be firming in the coming days as buyers purchase more stocks for future exports.
Mr Peter Kimanga, a director with the Global Tea and Commodities, expects a reversal in the prices that have been falling since mid-last year owing to huge supply.
“There is now panic buying at the auction and this is going to boost the price as the demand goes up with buyers wanting to stock more tea,” said Mr Kimanga at the auction. The prices have already shown some recovery with last week trading registering a marginal increase.
