Kenyan tea prices edge higher at auction

NAIROBI (Reuters) - The average price of Kenya's top tea rose to $3.29 per kg at this week's auction from $3.20 per kg previously, traders said on Tuesday.

Africa Tea Brokers said Best BP1s fetched $3.98-$2.60 per kg compared with $3.80-$2.60 per kg at last week's auction.

Top Pekoe Fanning Ones (PF1s) sold at $2.77-$2.40 per kg, up from $2.66-$2.34 per kg last week.

"(There was) improved general demand for the 8,516,967 kg on offer at irregular rates closely following quality, with 21 percent of teas remaining unsold," ATB said in a market report.

Kenya is the leading global exporter of black tea, with the commodity being the east African country's second-largest foreign exchange earner.

ATB said Egyptian Packers, Yemen, other Middle Eastern countries and Sudan lent strong support at the auction. Afghanistan and Kazakhstan were more active while Pakistan Packers showed less interest.

The government says tea production this year is likely to rise between 5 and 10 percent above 2009 levels of 315 million kg, slower than the 15 percent previously anticipated due to cold weather.