Thursday, May 20, 2010

Tea market up date Low Growns see highest quality - John Keells Tea Market report:

The 3.9 mkg of Low Growns that were on offer this week has been the highest quantity on offer since the sale of May 28, 2008, where around 4.0 mkg of Low Growns were on sale.

In spite of the large volume, the demand particularly for the Leafy varieties were quite encouraging. The OPAs met with a firm market, whilst the bold Pekoes commenced in keeping with the previous weeks levels but declined Rs 10 as the sale progressed.

The BOP1/OP1s too met with a fully firm market with the select best OP1s obtaining very attractive prices.

However the same could not be said about the Small Leaf grades where the bulk of the FBOP/FF1s and the bottom end teas declined as the sale progressed with a fair percentage of un-sold teas.

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

Most Low Grown Planting Districts have experienced thunder showers with some low lying areas reporting floods.

This has already hampered the movement of teas whilst the turn out of tea pluckers too have been rather poor, hence the quantities will show a drastic decline until such time we see an improvement in the weather.

The quantity at today’s Ex-Estate sale continued quite large with 1.4 Mkg of plain weathery teas on offer.

The dismal performance of the market continued with prices for most varieties declining by as much as Rs 20 to Rs 30.

The Nuwara Eliya’s too saw price declines of Rs 15 to Rs 20. The CTC teas continued its down ward trend with a significantly high volume remaining un-sold due to the lack of suitable bids.

The total unsold quantity in the Ex-Estate catalogue would be around 15 percent dessimal.

Western Teas

Select Best BOPs declined substantially following quality, other good invoices declined Rs 20 to Rs 30, Below Best sorts were Rs 15 to Rs 20 easier, plainer varieties shed Rs 20 and more. Select Best BOPFs declined Rs 30 and more, other good invoices were Rs 15 to Rs 20 easier, Below Best types were Rs 20 to Rs 30 easier, plainer varieties declined by a similar margin and more. Medium BOPs declined Rs 10 to Rs 15, whilst the BOPFs shed Rs 20 to Rs 30 on average.

Nuwara Eliya Teas

BOPs eased Rs 20 and more. BOPFs were Rs 20 to Rs 30 easier with a fair volume remaining unsold.

Uva Teas

BOPs shed Rs 15 to Rs 20. BOPFs declined Rs 20 to Rs 30 on average. Udapussellawa BOP/BOPFs shed Rs 40 to Rs 50 with a fair volume remaining unsold. CTC Teas Low Grown PF1s declined Rs 50 and at times more with a large volume remaining unsold. BP1s advanced Rs 10. High and Medium PF1s shed Rs 20 to Rs 30 on average. BP1s were irregularly dearer.

Low Growns

Lower demand. Select Best OP1s appreciated Rs 10 to Rs 20 and more at times, however the Best and Below Best types shed Rs 10 to Rs 15, poor sorts were irregularly lower by Rs 5 to Rs 10. Select Best BOP1s shed Rs 15 to Rs 20, the Best types along with the Below Best varieties too were lower by a similar margin and were mainly unsaleable due to lack of sufficient bids, poor types maintained last levels. Select Best OP/OPAs were firm to Rs 3 to Rs 5 lower at times, the balance eased Rs 5 to Rs 10.

Select Best Pekoes were steady, however the other bold Pekoe varieties declined Rs 10 to Rs 15 and more as the sale progressed. Select Best Pekoe1s were firm to Rs 5 to Rs 10 dearer, Best types were fully firm, however the Below Best and poor types eased Rs 10 to Rs 15. Select Best and Best BOPs shed Rs 20 to Rs 30 and more as the sale progressed, Below Best types were also lower by a similar margin, poorest shed Rs 10 to Rs 20 and at times were discounted due to lack of demand.

Select Best and Best BOP SP were lower by Rs 20, Below Best and poorer types too declined by a similar margin.

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