February 26, 2002	Tuesday	Zilhaj 13, 1422

MOMBASA, Feb 25: Kenya tea prices firmed at Monday’s auction as exporters stocked up because of fears supply would shrink due to dry weather, traders said.

“The market was strong,” said one dealer. “Buyers realized that quantities for the upcoming sales were lower and decided to stock up, pushing prices higher.”

Monday’s was the fourth weekly auction at which prices have increased, lifted by tightening supply due to dry weather in key production areas, traders said.

Brokers said keen support for medium and lower medium BP1s pushed their prices higher by $0.13 and $0.19 respectively. Top quality teas rose across the board by an average $0.5 per kg.

The Tea Board of Kenya said on Thursday that Kenya’s tea production fell to 27.3 million kg in January, a 1.9 million kg, or 6.91 percent, drop compared with the same month last year.

Tea production stood at 29.8 million kg in December, from 23.6 million n November.

Signs of decline started to show in the last quarter of 2001 when the November crop fell by up to 2.14 percent compared with the corresponding month in 2000.

Brokers said the decline in production was due to dry weather in growing regions of western Kenya during January.

“Although there are signs that the next few weeks may see heavy rains in the tea growing regions, exporters are trying to buy as much as they can now,” another broker said.

Britain, Egypt, Pakistan and Sudan bought heavily to support higher prices, traders said.

Best BP1s sold at $1.98-$2.04 per kg.

PF1s sold at $1.96-$2.14, a statement from Africa Tea brokers said.—Reuters