1.  TOBACCO MARKET PROGRESS

The 2015 market that commenced on 8th April has operated for 14 trading weeks by 10th July. The overall performance has not been very different from that of the previous season, in terms of both volume and pricing patterns, as the differences are marginal. Total volume for all tobacco types is 125 million Kg, with an average price of $ 1.76 Per Kg. Same time last year recorded 117 million Kg with a mean price of $ 1.76 per Kg as well.

1.1  BURLEY

A burley mass of 115 million Kg has been bought as at 14th selling week (106 million Kg in 2014). Highest price registered is $ 2.65 per Kg, and the lowest $ 0.85. Daily average prices continued to firm up by the weeks as the market is now receiving more of the good upper leaf than the bottom leaf. Seasonal average price is $ 1.68 per Kg, not very different from $ 1.69 per Kg registered same period in 2014.

A volume of 101 million Kg, has been traded under contract system, compared to auctioned volume of 14 million Kg (A ratio of 88: 12, respectively). Average prices were $ 1.70 and $ 1.55 per Kg, in that order.

The auction “No Sale” bales in burley is averaging 18%, from 4% in the first week.

The expected burley volume for the season is 150 million Kg.

1.2 FLUE CURED VIRGINIA

By 10th July, 2015, Flue Cured Virginia market netted 9 million Kg, compared to 10 million Kg bought last year by the same period of trading.  The mean price was $ 2.65 per Kg compared to $ 2.44 per Kg for last year. Highest price registered is $ 4.15 per Kg and lowest $ 0.50 Per Kg.

Around 98% of Flue cured Virginia is contracted. There is very high rejection rate of between 60% and 90% on the auction sale (Tobacco not contracted). Most auction growers are holding their crop in anticipation for better prices.

The season’s estimated production is 19.6 Million Kg.

1.3 FIRE CURED

The market has sold around 1 million Kg of Fire cured, at a mean price of $ 2.22 per Kg. This compares to 650,016 Kg marketed last season at an average price of $ 2.09 per Kg. The highest price achieved is US$ 3.50 per Kg with the lowest price at US$ 0.50 per Kg.

Table 1: VOLUMES AND AVER. PRICES 2015 VS 2014 AND 2013 - WEEK 14

TOBACCO

TYPE

2015

2014

2013

2015 % AVERAGE PRICE CHANGE ON 2014

VOLUME

(KG)

AVER. PRICE

(USD/KG)

VOLUME

(KG)

AVER. PRICE

(USD/KG)

VOLUME

(KG)

AVER. PRICE

(USD/KG)

BURLEY

115,000,000

1.68

106,000,000

1.69

90,700,000

1.90

-0.59

FLUECURED

9,000,000

2.65

10,000,000

2.44

9,400,000

2.94

8.61

FIRE CURED

1,000,000

2.22

650,000

2.09

1,350,000

2.25

6.2

TOTAL

125,000,000

1.76

117,000,000

1.76

101,450,000

2.00

0