NAIROBI (January 15 2004): Prices of top Kenyan teas fell at Tuesday's auction, dampened by light demand by Pakistan Blenders, a leading buyer of Kenyan teas, brokers said, predicting good sales in the first few months of the year.

"Brighter sorts were easier because Pakistani Blenders were less forceful, which gave Afghanistani and Pakistan Bazaar a greater opportunity to buy at easier rates," an official at Africa Tea Brokers (ATB) said.

But prices of lower grades rose. "Generally speaking, the market was good - only 1.63 percent was taken out," he said.

A total of 101,260 packages, or 6.6 million kg, of tea were offered. Another 113,380 packages, or 7.4 million kg, would be offered at next week's auction.

The sharp increase in quantity is the result of a holiday break by the auction. The ATB said the sale following next week's will be even larger with about eight million kg on offer but that this would not cause a drop in prices.

"We've got a big sale coming up but the weather dried up quite noticeably so we will progressively have lower quantities. Internationally, very little tea is in the pipeline. People are predicting a good market in the first quarter," the official said.

He said there was no large carryover from 2003 to 2004.

Prices of Best Broken Pekoes (BP1s) fell to $2.50-$2.80 per kg from $2.55-$2.82 at last week's auction.

Best Pekoes Fannings Ones (PF1s) remained unchanged at $1.96-$2.04 per kg.

Courtesy Business Recorder