Tea Market Comment:

Sale 30 July 28-30

The Market for most varieties of Low Grown’s eased this week with a temporary demand quizzed, trade sources indicate that transportation restrictions in these past two weeks had a bearing on the situation.

In the Large Leaf catalogues Select Best OP1s eased Rs. 10 to Rs. 20 and at times more. Select Best BOP1s too followed a similar trend. Other OP1/BOP1s eased towards the end. Better OP/OPAs too Rs. 10 to Rs. 20 lower with the poorest being unsaleable. Most Pekoes lost upto Rs. 20.

Small leaf varieties met less demand this week. A large volume of teas remain unsold and recorded sharp declines when sold. There was good general demand in the Ex-Estate catalogues. Better Western BOPs moved up Rs. 5 to Rs. 10. Best BOPFs gained Rs. 5. Others moved up Rs. 10 to 15. Nuwara Eliya BOPs continued irregularly lower. BOPFs were firm on last. Better Uva BOP/BOPFs gained Rs. 10 to 15.

A few brighter Udapussellawa BOPFs moved up Rs. 10. Others and BOPs held last levels. CTC PF1s gained Rs. 10 to 20. High priced sorts were lower by a similar margin BP1s gained Rs. 5 to Rs. 10. Custom data analyzed by Siyaka Research confirms that Sri Lanka exported a highest ever 158.5 Mnkg during the period January to June 2008. This figure is nominally higher than the previous record of 158.4 Mnkg in 2006.

At the end of that year the country shipped a record volume of 327 Mnkg. The Ruppe value of this years exports at Rs. 67 bln is well above the 2007 record of Rs. 48 bln. This converts to another record of $ 624 Mn a massive 42% more than last years record of $ 439 Mnkg for the period January to June.

Russia/CIS continues as the prime destination with imports of 34 Mnkg similar to 2007. The UAE has increased its imports by 38% to 24 Mnkg in 2008 against 17 Mnkg a year before. Iran is next with a drop of 6% on ‘07 with 15.4 Mnkg against 16.3 Mnkg. Syria is steady at 12.9 Mnkg against 12.6 Mnkg a year ago.

Courtesy: Asia Siyaka Commodities (Pvt) Ltd