Tea average records all time high in April

TEA: The National average for April has again recorded an all time high of Rs.196.30 as against Rs.188.16 when compared to the corresponding month last year.

The High and Medium Grown averages show a significant positive variance of Rs.34.23 and Rs.8.24 respectively at the auction of 3rd May, 2006. Low Growns, however show a negative variance of Rs.3.49. In all four months in the current year High Growns have recorded all time high averages.

The prices declined sharply at the Ex-estate sale of 1.0Mkgs on offer. A few select best Western BOPs sold well on special bids from UK, Japan and the Continent, although at lower levels to last week.

The buyer interests for BOPFs in the Plain and below best category were disappointing, resulting in a substantial weight, being unsold.

The bottom end of the market this week for BOP/BOPFs settled at Rs.165/- and Rs.170/- respectively, which is still significantly higher than the corresponding sale of last year.

The drop in the market could be attributed to the decline in product quality and the high quantities on offer. With the increase in Ex-estate quantities in the next two sales and a further drop in quality, prices could decline further.

A few bright Nuwara Eliya BOPs sold well, others along with the BOPFs were of an easier market.

Uva's too met with lower demand with both BOP/BOPFs recording price declines. CTCs also failed to maintain last levels. Demand for Dust and off grades followed a similar trend.

(Courtesy: John Keells Tea Report)