REPORT

John Keells Tea Market Report:

Improvement in crop intakes

As mentioned last week, crop intakes from the High and Medium Grown are on the rise with most factories running at full capacity.

Post Devali rush crops are a welcome change and is expected to revive production which suffered in recent months due to the vagaries of the weather.

Many planting districts are experiencing sunny mornings followed by evening showers which are ideal environmental factors which enhances rapid growth.

With the improvement in crop intakes catalogue quantities too will see a substantial rise from the last sale of October, which is expected to last till end January in the New Year.

Sri Lanka Tea Sale averages for the month of October released by the Tea board indicates a drop of Rs 20.64 compared to the corresponding month of 2011.

Whilst all elevations have recorded negative variances, Low Grown in particular has incurred the highest variance of Rs 25.58.

With the monthly sale averages falling by Rs 20 per kg compared to last year, the to date negative variance has now widened to Rs 7.15 per kg.

A feature of the drop in 2011 has come mostly from CTC teas of all elevations. It would appear that Low Grown CTC in particular have faired poorly in 2011 with the to date deficit increasing to Rs 33.53 per kg as at end October. Low Grown averages of Rs 383.28 to end October 2011 are the lowest on record since the year 2008.

Today's 0.93 mkgs of Ex Estate teas met with fair demand at lower levels. Western High Grown BOPs on average were Rs 5 to Rs 10 easier, whilst BOPFs declined Rs 15 and more as the sale progressed. Nuwara Eliya's were of a weaker market with little or no interest.

Uva's too fluctuated following quality and tended lower. Other than for the Best Low Grown CTC PF1s which were mostly firm, others along with the High and Medium types sold Rs 10 to Rs 15 lower than last week's prices.

The 3.4 mkg of Low Growns that were on offer this week, met with less demand. In the Leafy category, bold Pekoes were a lower feature. Select best BOP1/OP1s were mainly firm, others declined several rupees. Well made OPAs eased, others too declined Rs 10 to Rs 15. In the Small Leaf category, prices for FBOP/FF1s and also most Tippy varieties declined.

Most Russian buyers have now completed the urgent winter buying, whilst the uncertainty in the Middle East is also holding buyers from purchasing larger volumes.

Western Teas

Select Best BOPs were barely steady, other good invoices declined Rs 10, Below Best sorts were irregular, plainer varieties maintained last levels. Select Best BOPFs eased Rs 10, other good invoices shed Rs 10 to Rs 15 on average, Below Best sorts declined Rs 10 and more, plainer varieties eased Rs 5 to Rs 10. Medium BOPs declined Rs 15 to Rs 20. BOPFs were firm.

Nuwara Eliya Teas

BOPs shed Rs 10, whilst BOPFs declined Rs 5 to Rs 10 on average with a fair volume remaining unsold.

Uva Teas

BOPs eased Rs 10 to Rs 15 and more. Coloury BOPFs were firm, others declined Rs 15 to Rs 20 on average. Uda Pussellawa BOPs were irregularly dearer. BOPFs were firm to marginally easier.

CTC Teas

Select Best Low Grown PF1s were firm, others declined Rs 15 to Rs 20 and more. BP1s were firm. High & Medium PF1s shed Rs 10 to Rs 15 and more at times. BP1s declined Rs 10.

Low Growns

Fair demand. Select Best OP1s were firm to Rs 5 to Rs 10 dearer, Best types too gained Rs 5 to Rs 10, however Below Best and poor sorts were neglected and were lower by Rs 5 to Rs 10.

Select Best along with the Best BOP1s maintained last levels, however the balance shed Rs 5 to Rs 10 and more at times. Select Best and Best OPs declined Rs 15 to Rs 20, Below Best and poor sorts too were lower by Rs 5 to Rs 10. Select Best OPAs eased Rs 10 to Rs 20, Best types too were lower by a similar margin, Below Best and poor sorts declined sharply by Rs 10 to Rs 15. Select Best Pekoes shed Rs 10 to Rs 20, Bold Pekoe varieties were lower by Rs 5 to Rs 10 and more at times.

Select Best Pekoe1s declined sharply by Rs 30 to Rs 50, other Pekoe1 varieties too tended lower by Rs 5 to Rs 10. Select Best and Best BOP/BOPSP shed Rs 10 to Rs 15, Below Best and poorer types were lower by Rs 10. Select Best FBOP/FBOPF1s declined Rs 10, Best types were firm, Below Best and poorer sorts too were lower by Rs 5 to Rs 10. Select Best Tippy sorts were barely maintained on last levels, Best and Below Best types declined Rs 20 to Rs 30 to last, poorer types too were lower by Rs 10 to Rs 15.

Off Grades

Select Best and Best liquoring Fngs1s depreciated Rs 5 to Rs 10, Below Best and poorer sorts sold on firm levels. Select Best and Best BMs were lower by Rs 5 to Rs 10, whilst the Below Best and poorer sorts depreciated Rs 10 to Rs 15. All BPs sold at firm levels.

All Low Grown Fngs depreciated Rs 10 to Rs 15 and more at times.

Select Best BOP1As were firm to easier by Rs 5 to Rs 10, Best and Below Best too shed by Rs 10, poorer sorts too declined by Rs 10 to Rs 15.

Dust

Select Best Dust1s appreciated Rs 10 to Rs 15, whilst the Best Dust1s gained Rs 15 to Rs 20. Below Best types were firm to Rs 5 dearer, whilst the balance were irregular and mostly lower. All secondary Dusts gained Rs 10 to Rs 15. Best Low Grown Dust/Dust1s were firm, whilst the balance eased Rs 10 to Rs 15.