Tea report John Keells Tea Market Report:
Drop in leafy teas helps price structure
Traditionally, August brings about seasonal buying from overseas,
along with an array of ‘Air Mail’ bids on Uva teas, as well as on Nuwara
Eliya teas, whilst Western High Grown teas also receive more attention.
This year, perhaps due to the erratic weather and quality, the bids
on Uva and Nuwara Eliya teas have hitherto been few and far between,
with many BOP, BOPF, Pekoe and OP grades failing to reach expected
levels.
Even the Western BOPs were neglected, and received reasonable
attention only this week, albeit at less than attractive levels.
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Long leafy types advanced sharply |
Only their BOPF have received strong bidding, and prices have
steadily moved up in the past few sales, to reach Rs 400 or more, for
the better invoices.
Last year, the fourth quarter of the calendar year witnessed high
prices. Hence, evaluating the Sri Lanka Tea Sale Averages for Uva High
in the month of August, reveals a drop of almost Rs 60 per kg or 16.97
percent compared to the corresponding period of 2009, whereas Mediums at
Rs -24.53 (7.09 percent) and Low Grown at Rs -18.17 (4.33 percent) have
recorded much lower negative variances. Interestingly Low Grown CTC has
recorded a positive variance of Rs 50.20 per kg which is a 12.21 percent
increase over the same period last year.
The trade was anxious that the demand for Low Grown teas might not be
strong in August due to the Ramazan season.
However, CIS countries as well as many middle eastern countries came
in strongly, and the averages moved up steadily, to be above Rs 400.
During the past couple of months, there has been a drop in the
availability of leafy teas, as a total, from Sri Lanka, Vietnam and
India.
This has helped reach the current price structure.
Today’s 1.0 mkgs of ex-estate teas on offer met with good demand.
Western BOPs in general appreciated Rs 15 to Rs 20 for better teas on
offer, with most invoices now selling above the Rs 300 mark. BOPFs on
the other hand were well sought after with prices moving up by Rs 20 to
Rs 25, with a number of invoices exceeding the Rs 400 mark.
The few brighter Nuwara Eliya BOPs on offer were Rs 5 to Rs 10
dearer, whilst others were firm. BOPFs were firm to a little dearer,
except for the poor leaf types that tended lower.
Uvas were irregular following quality with only a handful of invoices
selling above Rs 500.
CTC PF1s from all elevations continued to decline especially as the
sale progressed with a fair weight remaining unsold.
The few BP1s on offer appreciated a few rupees.
The tea bag sector and Russia was quite active whilst UK, Japan and
Continental buyers lent fair support.
The 3.5 mkg of Low Growns that were on offer this continued to meet
with wide spread demand. In the Leafy category, the BOP1/OP1s continued
the bullish trend witnessed previously, whilst the OP/OPAs too saw wide
spread bidding.
Although there was excellent demand for Pekoes, prices for the better
varieties declined a few rupees. In the Small leaf category, FBOP/FF1s
continued to meet with excellent demand however, the prices declined a
few rupees.
The levels could be quoted as very attractive for the time of year.
In the Tippy varieties, particularly the long leafy types advanced
quite sharply whilst the small leaf varieties were mainly firm.
All in all another sale with attractive prices.
Russia, Iraq and Iran were very forceful, whilst Dubai, Syria,
Jordon, Saudi Arabia and other Middle Eastern countries lent useful
support.
Production in all Low Grown Planting Districts have shown a
progressive decline over the weeks due to the very hot and humid
conditions experienced at present. Hence, the volumes on offer in the
latter part of September and early October is expected to be low.
Western Teas
Select Best BOPs were firm to Rs 5 to Rs 10 dearer, other good
invoices were firm on last levels, whilst the Below Best and plainer
varieties followed a similar trend.
Select Best BOPFs were dearer by Rs 20 to Rs 30 and at times more,
other good invoices too gained Rs 10 to Rs 20, Below Best and plainer
varieties advanced Rs 5 to Rs 10. Medium BOPs were firm to Rs 10 dearer
at times, whilst the BOPFs were firm to a little easier.
Nuwara Eliya Teas
Bright Nuwara Eliya BOPs were firm to Rs 5 dearer, whilst the BOPFs
too appreciated Rs 5 to Rs 10.
Uva Teas
A few bright Uva BOPs sold well on special inquiry, whilst the others
were firm to easier by Rs 10 to Rs 20. Brighter BOPF too were firm to
dearer at times by Rs 10 to Rs 15.
CTC Teas
Low Grown CTC PF1s were Rs 10 easier at the commencement of the sale
but declined as the sale progressed with some invoices remaining unsold.
BP1s were firm to Rs 10 dearer. High and Medium PF1s were firm to a
little dearer at the start of the sale, but eased towards the latter
part, with a large volume remaining unsold. BP1s were Rs 5 to Rs 10
dearer.
Low Growns
Fair demand. Select Best OP1s declined Rs 5 to Rs 10, whilst the Best
and the Below Best types were firm, poor varieties appreciated Rs 5 to
Rs 10. Select Best BOP1s were irregularly lower by Rs 5 to Rs 10 whilst
the Best and the Below Best types gained Rs 15 to Rs 20 and more at
times. Select Best OP/OPAs were firm to dearer Rs 3 to Rs 5 following
quality, whilst the Best and the Below Best types met with fair demand,
poorer sorts appreciated Rs 5 to Rs 10 on average. Select Best
Pekoe/Pekoe1s shed Rs 5 to Rs 10, whilst the Best and the Below Best
types were irregularly lower by Rs 3 to Rs 5 and more at times.
Poorer sorts in all categories continue to attract good prices.
Select Best BOP SP were firm to Rs 5 to Rs 10 dearer at times, Best
types were firm, Below Best types met with irregular demand and eased Rs
5 to Rs 10, poorer sorts were firm. Select Best BOPs moved up Rs 10,
Best types were firm, Below Best and plainer sorts eased Rs 5 to Rs 10.
Select Best FBOPs maintained last levels, Best and Below Best types
eased Rs 10 to Rs 15, Below Best types too were lower by a similar
margin. Select Best FBOPF1s were firm, Best and Below Best types eased
Rs 10 to Rs 15, poorer sorts shed Rs 5 to Rs 10. Select Best Tippy
varieties maintained last levels, Best and Below Best sorts declined on
last levels, poorer sorts too were lower by Rs 5 to Rs 10.
Off Grades
Select Best liquoring Fngs1s were lower by Rs 5 whilst the Best and
the Below Best depreciated Rs 10 to Rs 15, poorer sorts eased by Rs 5.
All BPs were irregularly dearer by Rs 5. Select Best and Best BMs sold
at firm levels, Best and Below Best types appreciated Rs 5 to Rs 10,
poorer sorts were dearer by Rs 5. All Low Grown Fngs appreciated by Rs
10. Select Best BOP1As were to dearer by Rs 5, whilst the Best and Below
Best were firm on last levels, however poorer sorts were irregularly
dearer by Rs 5 to Rs 10.
Dust
Select Best Dust1s were firm, others in the Best and Below Best
category gained Rs 10 to Rs 15, whist the balance gained to a lesser
extend.
All secondaries advanced Rs 10 to Rs 20. Best Low Grown Dust/Dust1s
were firm, Below Best types were irregularly lower, whilst the poorer
sorts declined Rs 15 to Rs 20. |