Tea

John Keells Tea Market Report:

Weather to have adverse impact

Widespread and heavy rainfall interspersed with cold nights has been recorded from most plantations since Saturday. In fact many parts of the country has been inundated and the resulting floods have caused considerable damage to life and property. Most areas in the country recorded unusual cold temperatures in the past few days which according to the Meteorology Department is a result of the cold wave in India.

Plantations at all elevations too have had its fair share of damage with earthslips and work stoppages. Workers on some of the plantations did not report to work while in the rest, the worker outturns were badly affected.

The weather currently being experienced on the plantations is bound to have an adverse impact on crop as well as product quality.

In a normal year, January is considered a good cropping month and if the rains presently being experienced persist, we may see a drop in production in January compared to previous years.

Moreover workers on plantations in the Medium and High Grown elevations will have a break during the impending Thai Pongal Holidays which in turn would also impact on production during the month.

No sooner the present wet weather comes to an end, Western High Grown in particular will be hoping for bright and dry conditions to prevail in the first quarter of the year, conditions which would be more conducive for quality manufacture. Lets hope that we will have a fair weight of bright teas with seasonal character that will attract sufficient buyer interest in 2011 as the quality seasons in the recent past both in the Western as well as in the Eastern sector have being marred by bad weather, hence the availability of good quality seasonal Invoices were limited.

The Ex Estate sale comprising of 1.06 Mkgs of teas met with fair demand. Prices once again commenced Rs 10 to Rs 15 easier and concluded being firm to somewhat dearer at times.

The tea bag sector lent fair support, while Russia was selective. UK, Japan and Continental buyers operated following quality.

There was good demand for the 3.2 Mkg of Low Growns that were on offer. The select best OP1s were firm, however the balance shed Rs 10 to Rs 15. Select best BOP1s maintained last levels, balance were lower by Rs 10 to Rs 20. Better OP and OPAs advanced Rs 10 to Rs 20, balance shed Rs 10. Better Pekoe and Pekoe1s were firm but others were lower by Rs 5 to Rs 10. In the Small Leaf category, the better FBOPs advanced Rs 10 to Rs 15, balance maintained last levels. Better FF1s gained Rs 5 to Rs 10. The Better Tippy varieties were firm, however the balance shed on last levels. There was good demand from Iran, Russia and Iraq, while Dubai, Jordan, Syria, Saudi Arabia and Libya lent useful support.

Western Teas

Select Best BOPs declined Rs 10 to Rs 15 at the commencement of the sale and gradually appreciated by a similar margin as the sale progressed, other good invoices too followed a similar trend advancing Rs 5 to Rs 10 as the sale progressed.

Select Best BOPFs too were lower by Rs 10 at the commencement of the sale and gained Rs 10 to Rs 15 towards the latter part. Below Best sorts too were firm to a little dearer by Rs 5, plainer varieties were Rs 5 to Rs 10 lower. Select Best Medium BOPs were firm to Rs 5 easier, others too followed a similar trend. BOPFs too were firm to Rs 5 easier.

Nuwara Eliya Teas

A few bright BOPs were firm on last, whilst others declined by Rs 5. BOPFs too were Rs 5 to Rs 10 easier with a few bright invoices remaining firm on last levels.

Uva Teas

BOPs were firm to irregularly lower. BOPFs too followed a similar trend. Uda Pussellawa BOPs were firm to Rs 5 easier, while BOPFs too were irregularly lower by Rs 5 to Rs 10.

CTC Teas

Select Best Low Grown PF1s were barely steady, while others were firm to dearer by Rs 10 to Rs 15. Low Grown BP1s were easier by Rs 10 to Rs 15. High and Medium PF1s were firm to easier by Rs 5 to Rs 10, while BP1s too were irregularly lower by a similar margin.

Low Growns

Lower demand. Select Best OP1s were firm, while others declined Rs 5 to Rs 10 and more at times, Below Best and poorer sorts continued to attract good prices. Select Best BOP1s were firm to Rs 5 to Rs 10 dearer following quality, while others declined Rs 10 to Rs 20 on average, poorer sorts met with lower demand. Select Best OPs appreciated Rs 10 to Rs 20, while the Best and the Below Best types were irregularly lower by Rs 5 to Rs 10.

Select Best OPAs were irregularly lower by Rs 5 to Rs 10 while Best and the Below Best types declined with a similar margin. Select Best Pekoe/Pekoe1s declined Rs 10 to Rs 20, while Best and the Below Best types declined Rs 5 to Rs 10 on average.

Select Best BOPs advanced Rs 5 to Rs 10, Best types were firm, Below Best types advanced Rs 5 to Rs 10, poorer sorts tended a little irregular. Select Best BOPSP maintained last levels, however Best and Below Best types shed Rs 5 to Rs 10, poorer sorts met with irregular demand. Select Best and Best FBOP and FBOPF1s advanced Rs 10 and at times more, Below Best types gained Rs 5, poorer types were firm. Better Tippy varieties were firm, however Best and Below Best types shed Rs 20 to Rs 30, poorer sorts too declined on last levels.

Off Grades

Select Best liquoring Fngs1s were lower by Rs 10 to Rs 15, while Best and the Below Best types depreciated Rs 10, poorer sorts were lower by Rs 10. Select Best BMs were firm to dearer by Rs 5, while the Best and the Below Best types were dearer by Rs 5 to Rs 10, poorer sorts were firm to dearer by Rs 5. BPs were irregularly dearer by Rs 5. All Low Grown Fgs appreciated by Rs 5. Select Best BOP1As were on firm levels, while the Best and the Below Best were firm to dearer by an average of Rs 5, poorer sorts eased by Rs 5 on average.

Dust

Select Best Dust1s were Rs 5 to Rs 10 dearer, others in the Best and Below Best category were irregularly dearer, while the poorer sorts shed Rs 5 to Rs 10. Clean secondaries were firm, while the balance appreciated Rs 5 to Rs 10. Best Low Grown Dust and Dust1s were firm, while the balance were irregularly lower.

JKH tea market report