Friday, May 7, 2010
Tea Market update:High intakes anticipated in May - John Keells Tea Market Report
The output for the month of March was also higher by 13 percent. Much of the gains have come from Low Growns with a 62 percent increase followed by Mediums 48 percent and High with 26 percent. Reports from the plantations suggest that we could have a good May particularly from the Western sector where intakes are already reported to be high.
With improved cropping in the second quarter of the year a decline in the overall quality is expected with the net effect of reduced prices.
Again this is only to be expected at this time of the year with so much rain around.
Sri Lanka Tea Sale Averages for April, suggest that demand still looks good, with an overall increase of 11.2 percent for the month and a 26.03 percent to date compared to last year.
The first quarter average in 2010 of Rs 382.90 is also well above the first quarter of 2008 at Rs 332.26 which was the best first quarter, ever recorded for the industry.
Today's 0.95 mkgs of Ex-Estate teas met with fair demand at lower levels.
The best BOP and BOPF on offer, with a reasonably good leaf appearance and liquors that had some merit sold well, and mostly maintained last week levels.
Others however declined Rs 10 to Rs 15 on average. Nuwara Eliya's too declined.
Rs 20 to Rs 30 for BOPs and BOPFs on average. A handful of improved Uva BOP and BOPF appreciated a few rupees, whilst others maintained, following quality.
Low Grown CTC PF1s were firm to a little easier, although a number of invoices are still selling above Rs 500. Interestingly, CTC High and Medium PF1s appreciated substantially by Rs 30 to Rs 40 despite Mombassa auction showing a decline.
The 2.8 mkg of Low Growns that were on offer this week, met with very good demand. Once again the well made teas in the Small Leaf category, appreciated in value, at times fairly sharply, whilst in the Leafy category too the Pekoes, OP1s and the below best BOP1s all appreciated Rs 10 to Rs 15 and more for the Pekoes. All in all it was an excellent sale as far as prices are concerned.
There was renewed interest from Iran and Russia, whilst Dubai, Syria, Iraq, Saudi Arabia and other Middle Eastern markets also lent useful support.
Select Best BOPs shed Rs 5 to 10, other good invoices eased by a similar margin and at times more, Below Best sorts declined Rs 10 on average, plainer varieties shed Rs 20 and more with a few poor leaf sorts remaining unsold.
Select Best western BOPFs shed Rs 10 and more, other good invoices declined Rs 5 to Rs 10 on average, Below Best sorts were Rs 10 to Rs 15 easier, plainer varieties irregularly lower.
Western Medium BOPs were Rs 5 to Rs 10 lower.
BOPFs were firm to easier.
Nuwara Eliya Teas
BOPs declined Rs 20 to Rs 30 and more, whilst the BOPFs shed Rs 10 on average.
Coloury BOPs were firm, others declined Rs 5. BOPFs were firm to a few rupees easier. Udapussellawa BOPs gained Rs 10 to Rs 15, whilst the BOPFs advanced Rs 5 to Rs 10 on average.
Select Best Low Grown PF1s shed Rs 10, whilst others eased Rs 15 to Rs 20 on average. BP1s gained Rs 10. High and Medium PF1s advanced substantially by Rs 20 and more. BP1s were Rs 5 to Rs 10 dearer.
Excellent demand. Select Best OP1s appreciated Rs 20 to Rs 40, Best types too gained Rs 10 to Rs 20, Below Best and poor sorts were irregularly dearer by Rs 5 to Rs 10. Select Best BOP1s maintained last levels, however the Best varieties were irregularly lower by Rs 5 to Rs 10, Below Best types were dearer by Rs 10 to Rs 15, poor types were firm.
Select Best OPs maintained last levels, Best types along with the Below Best types were irregularly dearer by Rs 5 to Rs 10, poor types maintained last levels. Select Best and Best OPAs advanced by Rs 5 to Rs 10, Below Best types maintained last levels, however the poor types eased Rs 5 to Rs 10 following quality. Select Best Pekoes declined Rs 30 to Rs 50, however the balance advanced sharply by Rs 20 to Rs 30 and more as the sale progressed. Select Best Pekoe1s tended low by Rs 20 to Rs 40, however the balance Pekoe1s appreciated Rs 10 to Rs 20 and more towards the latter part of the sale. Select Best and Best BOP.SPs advanced Rs 5 to Rs 10, Below Best types were firm, poorer sorts shed a few rupees on last levels. Select Best BOPs moved by Rs 10 to Rs 20, poorer sorts were firm, Below Best types maintained last levels, poor sorts declined a few rupees on last. Select Best FBOPs met with strong demand and gained Rs 10 to Rs 20 and at times more, Best types too advanced Rs 5 to Rs 10, Below Best types were firm, poorer sorts eased Rs 5 to Rs 8. Select Best FBOPF1s moved up Rs 5 to Rs 10 and at times more towards the latter part, Best types gained Rs 5 to Rs 10, Below Best types were firm, poorer sorts were irregularly lower to last.
Select Best and Best tippy varieties met with excellent demand and moved by sharply above last, Below Best types were firm, poorer sorts were irregularly lower to last.
source - www.dailynews.lk