Tea Market

John Keells Tea Market Report:

All three elevations perform exceedingly well

For the first time this year, Sri Lanka’s tea sale averages in the month of April has exceeded the corresponding month of last year by Rs.39.89. Whilst all three elevations have performed exceedingly well, a significant contribution has come from the Low Grown with a positive variance of Rs.52.04. The average of Rs.438.31 for the month of April from the Low Grown sector is the second highest on record after the previous best average of Rs.446.09 recorded in September 2009. High and Medium Grown averages too have recorded positive variances of Rs.10.21 and Rs.25.83 respectively.

With the usual improvement in the global production in the second quarter of the year, and with an expected drop in quality, it would be hard to sustain similar averages in the coming months.

Last Friday’s Ex-estate sale comprising 1.28 Mkgs of tea met with lower demand. The best Western High Grown BOPs declined Rs.5 to Rs.10 and more, whilst the below best and plainer types declined by Rs.15 to Rs.20 and more on average. The best BOPFs on offer were barely steady, although a few invoices sold well following quality. The below best and plainer types declined Rs.15 to Rs.20 on average. The few Nuwara Eliya BOP/BOPFs were irregularly lower. Uva BOPs shed Rs.15 to Rs.20, whilst BOPFs declined Rs.10 to Rs.15 on average. Low Grown CTC PF1s were Rs.15 to Rs.20 easier with a fair volume remaining unsold. High and Medium types declined much as Rs.20 to Rs.25. Brokens too were of a lower market.

The 3.2 Mkg of Low Growns that came under the hammer this week met with good demand but at lower levels to last. The Leafy category, except for the best OP1s on offer, where prices advanced in value, most other grades eased with the Pekoes declining almost by Rs. 20 to Rs. 30 per kg. However in the Small leaf category, most grades maintained previous levels with some Tippy varieties advancing sharply. The Low Grown BOP1As and Off Grades too eased fairly sharply.

There was excellent demand from Russia, Iran, Libya and Iraq whilst the other Middle Eastern markets also lent useful support.

Western Teas

Select best BOPs declined Rs.5 to Rs.10, others shed Rs.10 to Rs.15 and more following quality, below best sorts eased Rs.20 on average, whilst the plainer varieties too shed Rs.5 to Rs.10. Select best BOPFs were barely steady, others shed Rs.10 to Rs.15 on average, below best sorts eased Rs.10 to Rs.15 on average, whilst the plainer varieties declined Rs.10 on average. Medium BOPs declined Rs.10 to Rs.15, BOPFs shed Rs.10.

Nuwara Eliya Teas

Nuwara Eliya BOP/BOPFs were irregularly lower.

Uva Teas

BOPs shed Rs.15 to Rs.20, whilst the BOPFs declined Rs.10 to Rs.15 on average. Uda Pussellawa BOPs shed Rs.15 to Rs.20. BOPFs eased Rs.10 to Rs.15.

CTC Teas

Select Best Low Grown PF1s declined Rs.10 to Rs.20 on average; others shed Rs.20 and more with a fair volume remaining unsold. High and Medium PF1s declined Rs.20. All BP1s declined Rs.20 to Rs.30.

Low Growns

Lower demand. Select best OP1s were fully firm, well made OP1s were firm, whilst the balance shed Rs.5 to Rs.10 and more following quality, below best and poor sorts eased Rs.10 to Rs.15. Select best BOP1s shed Rs.20 to Rs.30, best types declined sharply by Rs.40 to Rs.60, however the below best types maintained last levels, whilst stalky varieties shed Rs.5 to Rs.10. Select best OPs eased Rs. 30 to Rs.50, best and below best types were irregularly lower by Rs.5 to Rs.10, whilst poor types declined sharply by Rs.10 to Rs.20. Select best OPAs declined Rs.40 to Rs.50, whilst the Best types were steady, below best and poorer sorts shed Rs.10 to Rs.15. Select best Pekoes shed Rs.5 to Rs.10, whilst the bold Pekoe varieties too were lower by Rs.10 to Rs.20 and more as the sale progressed, flaky types shed Rs. 10 to Rs.15. Select best along with the best Pekoe1s eased Rs.15 to Rs.20, below best and poorer sorts too were lower by a similar margin. Good demand for Tippy Small leafy grades, however prices declined a few rupees on last levels.

Select Best and Best BOP/BOP.SPs shed Rs.10 per kg; below best sorts were firm; however the poorer types too declined Rs.10 per kg.

A few select best neat well made FBOPs maintained last levels; however the balance as well as the best types declined Rs.10 to Rs.15, below best and poorer types too shed by a similar margin. Select best and best FBOPF1s were lower by Rs.10 to Rs.15, below best and poorer types were lower by a similar margin.

Select best and best tippy sorts met with good demand and advanced above last, below best and poorer types met with irregular demand.

Off Grades

Select best and best liquoring Fngs1s were firm to dearer by Rs.10, below best and poorer sorts too were fully firm. Select best BMs shed Rs.20 to Rs.25, whilst best, below best and poorer BMs shed Rs.30 to Rs.40 and more as the sale progressed. All BPs shed Rs.10 to Rs.20. All Low Grown Fngs were firm to easier by Rs.20. Select best BOP1As were lower to last Rs.20 to Rs.30, best, below best and poorer BOP1As were lower by Rs.40 to Rs.50.

Dust

Select best Dust1s were firm, improved teas in the best and below best category gained Rs.5 to Rs.10, whilst the balance declined by a similar margin. Clean secondaries were firm whilst the below best types declined Rs. 5 to Rs.10, poorer sorts maintained last levels.

Best Low Grown Dust/Dust1s declined Rs. 15 to Rs.20, whilst the below best types declined to a lesser extent.