Business Tea Report
Bartleets weekly tea surveillance upto October 10:
High prices for BOPF category
THIS WEEK'S auction witnessed 4.806m kg of teas traded of which
0.556m kg were ex-estate teas. Once again, crops are down from last
week's 4.989m kg making it the eight straight week of falling supplies.
The ex-estate teas continued on with its upward movement with the
BOPF reaching dizzy highs of Rs. 405 and the BOP Rs. 380 per kilo.
Behind the strong demand were shipper to Russia where the winter buying
is closing in to spur higher consumption.
A number of exporters to Japan, US, UK and Europe were also active
during the sale. However, the key factor in the current high prices is
the currently low quantities arriving at the auction. Commentators view
the trend as essential short-term and expect that as quantities recover,
prices, will once again normalise.
In the leafy-grade segment, the OP grade joined with the OP1 to break
the all-time record by a margin of more than Rs. 50. It was a strong
market overall as the buyers were hunting for quantity and the deadline
for shipments were around the corner.
In the Tippy market, strong demand was evident, especially for FFIs
and FBOP grades where buyers from the CIS were very active.
Flowery grades were somewhat irregular where buyers from Dubai and
Iran were moderately active. Turkey and Saudi Arabia remained selective
in their buying.
Following weeks of speculation regarding more industrial action from
the estate worker unions, news emerged today that the President had
intervened to bring about a settlement.
The deal will see an increment of Rs. 30 to boost up the daily rate
to Rs. 290 per day, resulting in a minimum monthly wage of some Rs.
5,000 for the average estate worker according to sources. Private sector
workers are guaranteed a minimum wage of Rs. 5,000.
The soaring cost of living had prompted the plantation workers to
threaten further disruption to production less than a year after
resolving the last wage hike.
Speaking at the recently held Sri Lanka Export Awards Ceremony, the
Pakistan High Commissioner for Sri Lanka congratulated domestic
exporters on recording over six billion rupees in exports last year and
claimed that the island would easily be clearing an economic growth rate
of 10 to 12 per cent had a peace deal been reached.
Also speaking was the President of the National Chamber of Exports
who said that Sri Lanka's small domestic market offered limited
opportunity to achieve economies of scale and there was no other option
but to focus on increasing exports.
However, he pointed out the high cost of energy, finance and freight
rates as barriers to further development.
Since June, freight rates for a 20-foot container to Europe have
hiked 100 per cent to $ 750.
With 100 years of recorded trade between Turkey and Sri Lanka, TUSKON
(Turkish Confederation of Businessmen and Industrialists) held an Ifthar
reception at the Galadari Hotel, Colombo to promote better trade between
the two nations.
Sri Lankan exports to Turkey amounts to $ 34.2 million up to August
2007 and is set to easily clear last year's figure of $ 34.5 million.
Tea accounts for a large proportion of the exports to Turkey who is
amongst the world's top twenty economies.
Western High Growns
Better BOPs gained Rs. 15-20 for a few select best. Others
particularly the improved below best were dearer Rs. 10-20. Plainer
clean leaf sorts were dearer by Rs. 15-20 whilst the others too gained.
Better BOPFs gained Rs. 40-50. Others particularly the coloury sorts
too gained by a similar margin. Balance particularly the plainer poor
leaf sorts too were dearer but to a lesser extent.
Nuwara Eliyas
A few brighter BOPs were irregularly dearer whilst the others barely
steady. BOPFs were irregular and often lower up to Rs. 5 per kg.
CTC
BP1s were fully firm to marginally dearer whilst the PF1s continued
its upwards trends and were dearer by Rs. 20-30. Low grown were fully
firm to dearer.
Western Medium Growns
Better BOPs were firm whilst the others gained by Rs. 10-15. BOPFs
were dearer by Rs. 25-35.
Uva/Udapussellawas
Better Udapussallawa BOPs were irregularly lower whilst the high
priced Uvas followed a similar trend following quality. A range of clean
leaf coloury sorts gained by Rs. 10-15 per kg. Others fully firm Rs. 10
dearer. BOPFs gained by Rs. 30-40 and more for the coloury sorts.
Off Grades: Blacker cleaner BMs (Packing 30-36) appreciated by Rs.
5-10. Others appreciated by Rs. 2-4. Cleaner blacker FGS/FGS1s
appreciated by Rs. 4-8. Secondaries were irregularly lower by Rs. 2-4.
Dust: Best liquoring D/D1s appreciated further when comparison to
last week whilst appreciation continued at bottom end too. Low grown
cleaner blacker D/D1s appreciated by Rs. 6-8 whilst the secondaries
nudged with slight appreciation too. |
