John Keells Tea Market Report:

Ex-estate teas meet fair demand

The market for Tuesday's 1.0 Mkgs of Ex-estate teas met with fair demand at lower levels. The decline in prices were less for the better teas on offer which had a good leaf appearance in particular. The below best and plainer teas were Rs 15/- to Rs 20/- easier from last weeks closing levels. In the Western High grown category BOPF's continued to sell more than the BOP's by Rs 20/- and more on average.

However for Uva's this was the opposite with the BOP's selling above its counterparts by as much as Rs 20/- to Rs 30/- at times.

Once again a strong market prevailed for the good CTC PF1's although lower to last week sold in the range of Rs 500/- to Rs 600/-.

The broken's too from these estates gained by Rs 20/- to Rs 25/-. Russia and the tea bag sector were very active, whilst UK, Japan and Continental buyers lent fair support.

With the expected drop in product quality and larger volumes in the future closing sales, buyers would compete forcefully for teas with good leaf standards and reasonable liquors in the next sale or two. This could result in a further gap between the better teas and plainer teas.

The quantity of 2.6 Mkg of Low Growns that came under the hammer this week met with excellent demand. A very similar market to the previous week prevailed where the best and the below best teas attracted widespread demand, whilst the stalky/flaky varieties met with less demand and consequently prices declining Rs 10/- to Rs 15/-.

The rush crops that were experienced after the New Year holidays have now receded, most estates are at present harvesting moderate crops. Demand emanating from Libya that was evident at the Colombo Auction in the recent past has now reduced and it is likely that the Libyan buying will end soon. Therefore, prices at the bottom end of the market is expected to decline further in May. Hence it is imperative that producers now concentrate on a good end product since the price range for the best and the poorer teas are bound to widen.

There was excellent demand from Russia and Iran, whilst Libya, Iraq, Dubai, Syria, Saudi Arabia and other Middle Eastern markets also lent useful support.

Western Teas

Select Best BOPs declined Rs 10/-, other good invoices eased Rs 10/- and more, Below Best sorts shed Rs 10/- to Rs 15/- on average, plainer varieties declined Rs 15/- to Rs 20/- and more for the poor leaf sorts. Select Best BOPFs declined Rs 10/- to Rs 15/- and more, other good invoices eased by a similar margin, Below Best sorts shed Rs 15/- to Rs 20/- on average, plainer varieties eased Rs 10/- to Rs 15/- and more. Medium BOPs declined Rs 5/- to Rs 10/-. BOPFs were Rs 10/- to Rs 15/- easier.

Nuwara Eliya Teas

A few bright BOPs maintained, others declined Rs 20/- to Rs 30/- on average. BOPFs shed Rs 5/- to Rs 10/- on average.

Uva Teas

BOPs were firm. BOPFs declined Rs 5/- to Rs 10/- and more. Udapussellawa BOPs gained Rs 5/- to Rs 10/- BOPFs eased Rs 10/- to Rs 15/- on average.

CTC Teas

Select Best Low Grown PF1s declined Rs 10/- to Rs 15/-, whilst others shed Rs 20/- to Rs 30/- and more. BP1s were firm. High and Medium PF1s were Rs 20/- to Rs 30/- lower. BP1s were firm.

Low Growns

Good demand. Select Best BOP1s eased substantially, however the balance were firm on last levels. Select Best OP1s were steady, Best types were firm to Rs 5/- to Rs 10/- dearer at times, however the stalky varieties were neglected and declined Rs 5/- to Rs 10/-. Select Best OPs shed Rs 10/- on average, however the Best and Below Best types appreciated Rs 10/- to Rs 15/-, poor types declined Rs 5/- to Rs 10/- following quality. Select Best OPAs appreciated Rs 5/- to Rs 10/-, Best and Below Best types too gained Rs 10/- to Rs 15/-, however poor stalky types tended lower by Rs 5/- to Rs 10/-. Select Best Pekoes were irregularly dearer by Rs 5/- to Rs 10/-, the Best types advanced Rs 10/- to Rs 20/-, bold Pekoe varieties advanced sharply by Rs 10/- to Rs 20/-, flaky varieties were firm on last levels.

Shotty Pekoe1s appreciated Rs 5/- to Rs 10/-, Best and Below Best types were irregularly dearer by Rs 10/- to Rs 15/-, poor varieties were steady. Select Best, Best and Below Best BOP.SP moved up Rs 5/- to Rs 10/-, poorer types maintained last levels. Select Best and Best BOPs gained Rs 5/- to Rs 10/- and at times more, Below Best sorts were firm, poorer types gained by Rs 5/-. Select Best and Best FBOPs gained Rs 5/- to Rs 10/-, Below Best types were firm, poorer types also maintained last levels. Select Best and Best FBOPF1s gained Rs 5/- to Rs 8/-, Below Best types were firm, poorer types too maintained last levels. Select Best Tippy varieties maintained last levels, Best types advanced a few rupees, Below Best types were irregular, poorer types gained Rs 5/- to Rs 8/-.

Off Grades

Select Best liquoring Fngs1s were dearer by Rs 10/- to Rs 15/-, Best and Below Best appreciated Rs 5/- to Rs 10/-, poorer sorts were dearer by Rs 5/- to Rs 10/-. All BPs sold at firm levels. Select Best BMs were firm to dearer by Rs 5/-, while the Best and the Below Best were irregularly lower by Rs 5/- to Rs 10/-, poorer sorts depreciated Rs 10/-. All Low Grown Fngs appreciated Rs 10/-. Select Best BOP1As were firm to lower by Rs 5/-, whilst the Best and the Below Best too were easier by an average of Rs 15/-, poorer sorts also declined by Rs 10/- to Rs 20/-.

Dust

Good demand. Select Best Dust1s gained Rs 5/- to Rs 10/-, while others in the Best and Below Best category appreciated Rs 15/- to Rs 20/-. Clean secondaries were firm, whilst the balance advanced Rs 10/- to Rs 15/-. Best Low Grown Dust/Dust1s declined Rs 10/- to Rs 15/-, whilst the balance gained Rs 5/- to Rs 10/-.