John Keells Tea Market Report:

Renewed interest for Pekoes

The Sri Lankan national average stood at Rs 376.92 per kg for the month of October 2010. This was substantially lower (- 6.80 percent) to the Rs 404.41 realized during the same month of last year.

Once again the biggest losers have been CTC High and Medium elevations at Rs 83.33 and Rs 89.63 respectively.

However in view of the strong gains in the first two quarters of 2010 the 10 month average price for Sri Lankan teas still stands higher at Rs 368.32 compared to Rs 356.55 per kg during the same period last year.

Elsewhere the Kenyan average auction price for the month of September was around US$ 2.80 per kg slightly lower compared to US$ 3.18 for the corresponding period last year.

In Kenya too the average price at the Mombasa tea auction in 2010 is slightly higher compared to US$ 2.64 last year.

This is in the backdrop of a substantial production increase of around 50 mkgs at the Kenyan auction sales (January to September) compared to 2009.

Today's 0.82 mkgs of Ex estate teas met with fair demand although somewhat lower to last week.

The best Western High Grown BOPs on offer were firm to Rs 15 to Rs 20 easier, whilst the balance invoices declined but to a lesser extent. BOPFs too on average were Rs 15 to Rs 20 easier.

Nuwara Eliya BOP/BOPFs were Rs 10 to Rs 15 lower.

Uva's too tended lower following quality although a few semi leafy invoices sold well. High and Medium PF1s appreciated Rs 10 to Rs 15 whilst Low Growns were mostly firm.

The 3.4 mkg of Low Growns that were on offer this week met with improved demand. In the Leafy category, the BOP1/OP1s continued its bullish run with the best on offer selling above Rs 600. Pekoes too met with renewed interest with prices advancing up to Rs 10 per kg.

OPAs were mainly firm, however poorest on offer continued to be neglected with little or no bids.

In the Small leaf category, FBOP/FF1s advanced in value, whilst the Tippy varieties too appreciated. All in all another excellent sale.

Iran and Russia were quite active, whilst Dubai, Iraq, Syria, Jordon, Saudi Arabia and other Middle Eastern countries also lent useful support.

Western Teas

Select Best BOPs were firm to Rs 5 easier, other good invoices declined Rs 10, Below Best sorts and plainer varieties eased Rs 10 to Rs 15 on average. Select Best BOPFs shed Rs 10 to Rs 15, other good invoices which were Rs 10 easier at commencement advanced as the sale progressed, Below Best sorts shed Rs 10 on average, Plainer varieties were Rs 10 to Rs 15 easier.

Nuwara Eliya Teas

BOP/BOPFs eased Rs 10 to Rs 15 on average.

Uva Teas

BOPs declined Rs 10 to Rs 15, BOPFs were firm. Udapussellawa BOPs were irregular, BOPFs were firm.

CTC Teas

Low Grown PF1s shed Rs 10. High and Medium PF1s advanced Rs 10 to Rs 15. All BP1s were firm.

Low Growns

Good demand. Select Best along with the Best OP1s eased Rs 10 to Rs 15, Below Best and poor sorts were irregularly lower by Rs 5 to Rs 10. Select Best BOP1s maintained last levels, the Best types were steady, however the Below Best and bold types declined Rs 5 to Rs 10 and more at times, poor sorts too tended lower by a similar margin.

Select Best OPs appreciated Rs 10 to Rs 20, Best types too gained Rs 5 to Rs 10 and more following quality, Below Best types were firm on last levels, the poor types tended lower and were neglected. Select Best OPAs were fully firm, Best types along with the clean Below Best types appreciated Rs 5 to Rs 10, poor types declined sharply by Rs 10 to Rs 20 were mainly unsaleable due to lack of sufficient bids.

Select Best Pekoes were firm to Rs 5 to Rs 10 dearer, Bold Pekoe varieties appreciated Rs 5 to Rs 10 and more as the sale progressed, however flaky types eased Rs 5 to Rs 10.

Shotty Pekoe1s were irregularly dearer by Rs 5 to Rs 10, Best types declined Rs 10 to Rs 15 Below Best and poor sorts maintained last levels. Select Best and Best BOPs advanced Rs 5 to Rs 10, Below Best types too advanced by a similar margin, poor types advanced Rs 5.

Select Best and Best BOP/BOP SP moved up Rs 5 to Rs 10, Below Best types were firm, poorer types met with irregular demand.

Select Best and Best FBOPs advanced Rs 10, Below Best sorts gained Rs 5 to Rs 10, poor types were firm.

Select Best and Best FBOPF1s gained Rs 10, Below Best sorts moved by Rs

5, poorer sorts were firm.

Select Best and Best Tippy varieties met with good demand and advanced above last levels, Below Best types too gained Rs 10 to Rs 20, poor sorts met with irregular demand.

Off Grades

Select Best lacquering Fngs1s were dearer by Rs 5 to Rs 10, whilst the Best and Below Best types appreciated Rs 5 to Rs 10, poorer sorts were dearer by Rs 10. All BPs were dearer by Rs 15 to Rs 20. Select Best and Best BMs were lower by Rs 10 to Rs 20, whilst the Below Best depreciated Rs 10, poorer sorts were irregularly dearer by Rs 10.

All Low Grown Fngs appreciated Rs 10 to Rs 15. Select Best BOP1As were lower to last by Rs 10, Best and Below Best too eased by Rs 10 to Rs 25, poorer sorts were easier by Rs 30 and more with very low demand.

Dust

Select Best Dust1s appreciated Rs 5 to Rs 10. Improved teas in the Best and Below Best category were firm to Rs 10 dearer, whilst the balance declined by a similar margin. Clean secondaries along with the Below Best types were firm, whilst the balance gained Rs 10 to Rs 15. Best Low Growns Dust/Dust1s shed Rs 15 to Rs 20, whilst the balance appreciated Rs 10 to Rs 15.