John Keells Tea Market Report:
Weak market for liquoring teas
The inter monsoonal evening thunder storms that is the precursor to
the North East monsoon usually commence in early October. This year, in
September the tail end of the South West monsoon came in strong and
October was relatively dry.
The convergence of winds has now commenced and Colombo received 440
mm of rain in 12 hours.
This was the highest in 18 years, and resulted in disruptions to the
transportation system in the city. The Meteorological Dept forecasts
that evening thunder storms will persist until the middle of December.
This would indicate a deviation from the usual weather pattern and
could be as a result of Global warming. Hitherto, the monsoons have not
been unduly delayed.
However, some changes are being witnessed and one such scenario is
that Hydro Power Reservoirs filled up in September, including Kotmale
and Victoria, which usually does well during the North and East monsoon.
Another is that in the past, the crop increased as the sun came out
In recent times, the intensity of the rains have curtailed crop
whilst no sooner the sun comes out, the conditions appear very dry, thus
A close study is therefore needed to overcome these scenarios, as the
cost of production remains high, for extended periods.
The market for liquoring teas was weaker last week, with the high
priced teas falling the most. More buyers appeared to be active but at
The Tea bag sector was active but Russian interest appeared less.
Buying for Japan was evident.
Most of the fairly good western teas were selling around the Rs 400
level whilst the best sold between Rs 420 and Rs 450.
Low grown CTC teas continued to weaken in the wake of larger
offerings, except for two of the most established marks which held a
good premium over the others.
The 3.7 mkg of Low Growns that came under the hammer this week met
with widespread demand but at lower levels. It appeared that there was
less Russian interest. In the Leafy category. BOP1/OP1s continued to
sell well, however at slightly lower levels. Demand for the Pekoe grade
continued with the bulk of the offerings selling around Rs 390 - to Rs
420. OPAs too sold well, however once again at slightly lower levels to
In the Small leaf category the best FBOP/FF1s were barely steady but
others declined as the sale progressed.
The poorest were difficult of sale.
There was less inquiry from Russia, however Iran, Iraq and Syria were
quite strong. Libya, Dubai, Jordon, Saudi Arabia also lent useful
Select Best BOPs declined Rs 10 to Rs 15, other good invoices were
firm to marginally easier, Below best sorts declined Rs 10 and more,
plainer varieties were firm to Rs 5 easier.
Select Best BOPs declined Rs 15 - to Rs 20 other good invoices shed
Rs 10, Below Best sorts declined Rs 10 - to Rs 15 on average, plainer
varieties were Rs 10 easier.
Medium BOPs were firm. BOPFs shed Rs 5 to Rs 10.
Nuwara Eliya Teas
Brighter BOPs declined Rs 10, others declined substantially. BOPFs
shed Rs 20 to Rs 30 on average.
BOPs eased Rs 10 to Rs 15, whilst BOPFs were firm to Rs 5 easier.
Udapussellawa BOPs declined Rs 15 to Rs 20 and more. BOPFs shed Rs 5 -
to Rs 10 on average.
Select Best PF1s declined Rs 15 to Rs 20, others shed Rs 30 and more
with a large volume remaining unsold. BP1s declined Rs 15 to Rs 20. High
& Medium PF1s declined Rs 5 to Rs 10. BP1s were firm to Rs 5 easier.
Fair demand. Select Best OP1s eased Rs 10 on average, balance too
were lower by Rs 10 to Rs 15, Below Best and poor types were mainly
neglected due to lack of sufficient bids.
Select Best BOP1s maintained last levels, however Best and Below Best
types declined Rs 5 to Rs 10, poor sorts too were irregularly lower by a
similar margin. Select Best OPs shed Rs 20 to Rs 30, the Best types too
were lower by Rs 10 to Rs 15 and more at times, Below Best and poor
sorts eased Rs 5 to Rs 10. Select Best OPAs were firm on last levels,
however the Best types were irregularly lower by Rs 5 to Rs 10, Below
Best types were steady, bold types tended lower by Rs 5 to Rs 10.
Select Best Pekoes tended lower, Best types declined Rs 10 to Rs 15,
bold Pekoe varieties along with the flaky types too were irregularly
lower by Rs 5 to Rs 10. Shotty Pekoe1s shed Rs 20 to Rs 40, Best types
were lower by Rs 10 to Rs 20, Below Best and poor sorts were irregularly
lower by Rs 5 to Rs 10 Select Best and Best BOP/BOPSP eased Rs 5 to Rs
10, Below Best types were firm, poorer types were irregularly lower to
Select Best FBOPs advanced Rs 10 per kg, Best and Below Best types
eased Rs 5 to Rs 10, poorer sorts too declined Rs 5 to Rs 10. Select
Best FBOPF1s were firm, however Best and Below Best types shed Rs 5 to
Rs 10, poorer types too were lower by a similar margin.
Select Best and Best Tippy varieties declined substantially on last
levels, Below Best types were barely steady, poorer sorts declined Rs
Select Best liquoring Fngs1s appreciated Rs 10 to Rs 15, whilst the
Best and the Below Best types were dearer by Rs 10, poorer sorts
appreciated Rs 10 and more at times.
All BPs sold at firm levels. Select Best BMs were dearer by Rs 5 to
Rs 10, Best and the Below Best types were irregularly dearer by Rs 5
poorer sorts eased by Rs 10 to Rs 15.
Select Best, Best and Below Best Low Grown Fngs were firm to dearer
by Rs 10, whilst poorer sorts depreciated Rs 10 to Rs 15.
Select Best and Best BOP1As were firm to dearer by Rs 5 to Rs 10,
Below Best however eased by an average of Rs 10, poorer sorts too
declined by Rs 15 to Rs 25 and more at times with poor demand.
Select Best Dust1s declined Rs 10 to Rs 15, other Dust1s in the Best
and Below Best category were firm following quality, whilst the balance
declined Rs 10 to Rs 15.
Clean secondary Dust appreciated Rs 10 to Rs 15, whilst the balance
Best Low Grown Dust/Dust1s were firm, whilst the balance were Rs 10
to Rs 15 easier.
Tea promotion campaign
At the tea promotion campaign
Seven tea companies in Sri Lanka for the first time got together and
organized a tea promotion campaign, along the Narahenpita road from
Russels Tea Lounge to the junction.
Russels Chairman Russel Perera said this was organized to promote
varieties of tea among the local people.
Russels (Pvt) Ltd launched this Tea Lounge and gallery on the
September 25 with the collaboration of eight tea suppliers in Sri Lanka.
Akbar Brothers, Bogawanthalawa Tea Estates, Ranfer Teas, Imperial
Teas, Amezon Trading, Empire Teas and Expo Lanka gave support during and
after the launching of the lounge. It was their encouragement and
support that made it a success, he said. Through this tea promotion we
have made arrangements to give out few leaflets and samples to the
public to taste, so they can have an understanding of what they will get
at the lounge, Perera said.