Tea market comments

TEA SALE: Auction quantities showed a further decline and totalled 5.3 m/kgs of which ex estate offerings comprised 0.75 m/kgs.

This week's ex estate offerings showed an all round improvement in quality. The total volume on offer remained relatively small at 0.75 m/kgs.

There was improved wide spread demand which could be attributed to a combination of better quality of teas on offer, limited availability and more importantly the likely reduction in volumes at the ensuing sales following the 14-day 'Go-slow' on plantations mainly in the high and mid-grown districts.

The latest reports indicate that during the past two days work on plantations have come to a grinding halt pending the wage negotiations between the trade unions and the regional plantation companies.

A total of 2.7 m/kgs came up for sale in the low grown catalogues this week. In the Leafy catalogues better Pekoes together with OP/OPAs were fully firm to dearer. A select range of BOP1s too sold around last levels whilst the high priced OP1s were lower to previous.

At the lower end too there was improved demand and prices for most grades were dearer. In the Tippy catalogues too a fair cross selection of well made teas together with clean below best varieties sold at firm to dearer rates.

The total sale average for the month of November '06 of Rs. 209.28 per kg shows an increase of Rs. 14.58 per kg compared to November 2005.

It has also noteworthy that all categories have recorded increases for the month with High growns recording an increase of Rs. 15.98 per kg followed by Low growns of Rs. 14.61 per kg and the medium growns of Rs. 10.55 per kg compared to the corresponding month.

Courtesy: Forbes and Walker Tea Brokers (Pvt) Ltd.