John Keells Tea Market Report:

Top price for Uva Highlands

Global production in the third quarter is expected to be in line with previous years with the exception of North India where intakes have shown a downward trend.

June production in Kenya is slightly lower compared to May but still a record of 29.8 Mkgs. As anticipated, North Indian June crop which has been just released, has recorded a 16.4 percent drop, while South India has shown a slight increase of 4.4 percent.

Production in Vietnam and China continue to be hampered by bad weather and is unlikely to get back to their normal production any time soon.

Overall June 2010 global production appears to be slightly lower to 2009 with the exception of Sri Lanka where an increase of 5.9 Mkgs was recorded.

Slightly lower crop intakes in most major black tea producing countries and with impending cooler weather in Russia and Europe, a healthier demand could be expected in the coming months. As for Sri Lanka, we are witnessing improved demand particularly for Uva teas on account of the seasonal liquoring properties.

At Ex-Estate sale, a BOP invoice from Uva Highlands Estate managed by Malwatte Valley Plantations PLC secured a price of Rs 750 per kg which was the Top Price and this line of tea was purchased by Ceyexxe Limited.

Western BOPF were mostly firm whilst BOPs continued to be neglected with a few key buyers being less active. The few brighter Nuwara Eliya’s on offer sold well, whilst BOPF were firm to a few rupees dearer, with a number of invoices selling above the Rs 400 mark.

Low Grown CTC PF1s continued with good demand selling in the price range of Rs 450 to Rs 520, whilst High and Medium types were irregularly lower.

Another week of strong demand for the 3.4 mkgs of Low Growns this week. Most grades in the Leafy and Tippy catalogues appreciated in value. The lower volumes on offer together with the impending Russian Winter Buying with a strong Middle East presence has propelled the Low Grown tea prices in the past 2 - 3 weeks.

Western Teas

Select Best BOPs declined Rs 5 to Rs 10, other good invoices too shed Rs 10 on average, Below Best and plainer sorts shed Rs 10 and more. Select Best BOPFs advanced Rs 5 to Rs 10, other good invoices were firm to dearer, Below Best sorts were firm to Rs 5 easier. Plainer varieties were irregularly lower. Select Best Medium BOPs advanced Rs 5 to Rs 10, others declined Rs 10 on average. Medium BOPFs advanced Rs 10 on average.

Nuwara Eliya Teas

A few bright BOPs advanced Rs 10 to Rs 15 and more, others were irregularly lower. BOPFs gained Rs 5 to Rs 10 on average.

Uva Teas

Brighter BOPs sold well on special inquiry, others were firm. A few Bright BOPFs advanced substantially following special inquiry, others were Rs 5 to Rs 10 dearer. Udapussellawa BOPs declined Rs 5 to Rs 10 and more, BOPFs eased Rs 5.

CTC Teas

Low Grown PF1s were firm to dearer. BP1s were selectively dearer. High and medium PF1s declined Rs 5 to Rs 10 and more. BPs shed Rs 10 on average.

Low Growns

Excellent demand. Select Best along with the clean Best and Below Best OP1s were irregularly dearer by Rs 10 to Rs 15, other Below Best categories were fully firm, poor stalky types declined Rs 5 to Rs 10. Select Best BOP1s appreciated Rs 10 to Rs 15, Best types were steady, Below Best and poor sorts were irregularly dearer by Rs 5 to Rs 10.

Select Best OPAs appreciated Rs 10 to Rs 20, Best and Below Best types were firm to Rs 5 to Rs 10 dearer, poor types declined Rs 10 to Rs 15. Select Best OPs gained Rs 10 on average, the Best types too were dearer by Rs 5 to Rs 10 and more following quality, Below Best types were firm on last levels, poor sorts shed Rs 5 to Rs 10.

Shotty Pekoe/Pekoes1s appreciated Rs 10 to Rs 20, the Best types were irregularly dearer by Rs 3 to Rs 5, Bold Pekoe varieties appreciated Rs 5 to Rs 10, clean flaky varieties too gained Rs 5 to Rs 10. Select Best and Best BOP SP. were firm, Below Best types moved up Rs 5 to Rs 10, poor types were irregularly lower to last. Select Best BOPs advanced Rs 5 to Rs 10, Best types were firm, Below Best and poor sorts moved up Rs 5 to Rs 10.

Select Best and Best FBOPs moved up Rs 10 to Rs 20 and more at times towards the latter part of the sale, Below Best types also gained by a similar margin, poor sorts too were dearer by Rs 10. Select Best and Best FBOPF1s moved up Rs 10 to Rs 20, Below Best types gained Rs 10 to Rs 15, poorer types were irregular. Select Best Tippy varieties met with good demand and maintained last levels, Best and Below Best tended a little irregular and were a little lower to last, poorer types met with similar demand.

Off Grades

Select Best liquoring FNGS1s sold at firm levels, whilst the Best and the Below Best were firm to dearer by Rs 5, poorer sorts appreciated Rs 5. All BPs appreciated Rs 20 and more at times.

Select Best BMs were dearer by Rs 10 to Rs 15, Best and the Below Best appreciated Rs 10, poorer sorts sold at firm levels. All Low Grown Fgs were firm to dearer by Rs 5. Select Best and Best BOP1As appreciated Rs 25 to Rs 30 and more at times, Below Best and poorer sorts were firm at last.

Dust

Select Best Dust1s were firm, others in the Best and Below Best category advanced Rs 15 to Rs 20, while the poorer sorts were irregularly dearer. Clean secondaries gained Rs 5 to Rs 10, while the Below Best types gained Rs 10 to Rs 15, poorer sorts shed Rs 8 to Rs 10. Best Low Grown Dust Dust1s eased Rs 5 to Rs 10, while the balance were irregularly dearer.