John Keells Tea Market Report:
Improved demand for Low Growns
The go-slow which commenced on July 24 by dock workers over
privatization at Mombasa, which is East Africa’s biggest port, has
disrupted shipments of Black tea from Kenya, the world’s largest
exporter.
Following discussions with the dock workers unions and the management
an amicable settlement is expected soon.
The port also handles trade from other land locked East African
countries, such as Uganda, Rwanda and Burundi.
In the meantime, it is reported that the Japanese Government has
banned exports of green tea from four agricultural regions of Japan
after leaves were tested positive for high levels of radioactive cesium.
Last week’s 1.35 mkgs of Ex Estate teas met with better demand
particularly for BOPFs. The select Best Western BOPs sold well although
irregular, whilst the Below Best and plainer types too were irregular.
The Best BOPFs were a little dearer at times, whilst the Below Best
gained Rs 10 to Rs 15 as the sale progressed.
The Plainer types too advanced by a similar margin. Little interest
continued to prevail for Nuwara Eliya teas with many invoices still
selling below Rs 300.
The first few invoices that came up with a hint of seasonal character
from the Eastern Sector received reasonable inquiry with a handful of
invoices touching the Rs 500 mark, whilst others with some brightness
sold in the range of Rs 400 to Rs 475. Low Grown CTC PF1s were firm to
dearer by Rs 5 to Rs 10, whilst High and Medium types too were firm to
irregularly dearer.
There was good demand from UK, Japan and Continental buyers, whilst
Russia and the tea bag sector too lent good support.
The 3.7 mkg of Low Grown teas that were on offer this week met with
improved demand. In the Leafy category, best BOP1s sold above Rs 600,
whilst the OP1s sold between Rs 650 to Rs 690. Shotty Pekoe1s advanced
in value whilst the bolder varieties too met with a dearer mark.
Select best OPAs sold around Rs 650, however, the below best
varieties met with slightly less demand. In the Small Leaf category, FBO/PFF1s
advanced in value whilst the Tippy varieties too sold above the previous
week’s levels.
Due to the dry weather that prevailed in most Low Grown Planting
Districts, crop intakes have been considerably low, hence the auction
quantities have declined for the ensuing sales.
With normalcy returning to the Middle East, movement of teas within
borders have intensified, therefore the market is expected to be
buoyant.
Western Teas
Select Best BOPs were barely steady, other good invoices were
irregularly dearer following quality, Below Best and plainer varieties
were firm to irregular. Select Best BOPFs advanced Rs 10 to Rs 15,
whilst other good invoices were firm to marginally dearer, Below Best
and plainer varieties advanced Rs 5 to Rs 10 and more as the sale
progressed. Medium BOPs were firm to marginally easier. BOPFs were
irregular.
Nuwara Eliya Teas
A few bright BOPs were firm, others were easier. BOPFs were firm to
marginally easier.
Uva Teas
Bright BOP/BOPFs advanced substantially following special inquiry.
Other BOPs gained Rs 10 to Rs 15, whilst the BOPFs gained Rs 10. Uda
Pussellawa BOPs declined Rs 10. BOPFs gained by a similar margin.
CTC Teas
Select Best Low Grown PF1s advanced Rs 10 and at times more following
special inquiry, others gained Rs 15 to Rs 20 on average. BP1s declined
Rs 5 to Rs 10. High and Medium PF1s were firm to Rs 10 dearer. BP1s
gained Rs 5 to Rs 10.
Low Growns
Good demand. Select Best OP1/BOP1s appreciated Rs 10 to Rs 15 and
more at times, the balance were fully firm. Select Best OPs shed Rs 20
to Rs 30, Best types were firm to Rs 5 to Rs 10 lower at times, Below
Best and poor sorts were steady.
Select Best OPAs maintained last levels, Best types were irregularly
lower by Rs 5 to Rs 10, Below Best and poor sorts were firm.
Select Best Pekoe/Pekoe1s appreciated Rs 20 to Rs 40, Best and Below
Best types gained Rs 5 to Rs 10, flaky types were fully firm to Rs 5 to
Rs 10 dearer at times.
Select Best BOPs maintained last levels, Best and Below Best types
were lower by Rs 5, poorer types maintained last levels.
Select Best BOPSPs were firm, Best and Below Best types shed Rs 5 to
Rs 10, poorer types declined by a similar margin.
Select Best FBOPs were firm, Best types too maintained last levels,
Below Best types moved up Rs 5 to Rs 8, poorer sorts were irregular.
Select Best FBOPF1s were firm, Best and Below Best types were
irregular, poorer types too were lower by Rs 5 to Rs 10.
Select Best and Best Tippy varieties met with good demand and
advanced above last, Below Best and poorer sorts met with irregular
demand.
Off Grades
Select Best and Best liquoring Fngs1 appreciated by Rs 10, whilst the
Below Best and poorer sorts were dearer by Rs 10. Select Best and Best
BMs were firm to dearer by Rs 5, whilst the Below Best and poorer sorts
sold at firm levels.
All BPs appreciated Rs 10. All Low Grown Fngs depreciated by Rs 5 to
Rs 10. Select Best BOP1As along with the Best appreciated Rs 10 and more
at times, Below Best and poorer sorts however, eased Rs 10 and more as
the sale progressed.
Dust
Select Best Dust1s were firm, whilst the Best and Below Best types
appreciated Rs 5 to Rs 10, poorer sorts were firm. Clean secondaries
maintained last levels, whilst the balance declined by Rs 4 to Rs 8. All
Low Grown Dust/Dust1s gained Rs 5 to Rs 10.
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