Thursday, March 4, 2010

SRI LANKA - SRI LANKA TEA PRICES ON UPWARD TREND AGAIN


Mar 04, 2010 (LBO) - Prices of Sri Lankan teas grown at higher elevations mainly by regional plantations companies recovered at this week's Colombo auctions as quality improved and crops began to fall, brokers said.
Auction average prices have stayed at record highs in the past two months, they said.

"The dearer trend in prices experienced this week could be attributed to the improved quality and the likelihood of a decline in volumes during the latter part of this month," Forbes & Walker Tea Brokers said in a report.

The overall quality of offerings in the forthcoming sales shows a progressive improvement, they said.

"Therefore, it would be reasonable to anticipate a buoyant market during the forthcoming sales."

A selection of teas from the western slopes of the central hills has shown a slight improvement.

"Consequently, these improved teas appreciated irregularly in value following quality," the brokers said.

The 'Western quality season' when teas from that region produce their best quality and fetch high prices had been delayed.

Brokers John Keells said that although the weather in the 'Western High Grown' region during January had been erratic with a few showers being reported, February had mainly remained dry.

"We could expect to see a few estates from this region producing limited invoices of teas with some seasonal character."

Present weather conditions from plantation regions indicate extremely hot and dry conditions, the brokers said.

"Crop intakes have been severely affected and with present weather expected to continue till the end of March, we could see intakes dipping sharply."

John Keells also said that monthly average prices at the Colombo auctions have been at new highs for two consecutive months in January and February 2010.

The February average of 380.36 rupees a kilo surpassed the previous best of 331.71 rupees a kilo in 2008.
 
source - www.lbo.lk

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