The biggest gain has come from Kenya with an increase of 63.44 mkgs followed by Sri Lanka with 28.7 Mkgs to end May.
Both these countries are on track to come close to their highest production years.
In 2007 Kenya achieved a record crop of 369.6 mkgs and as at end April 2010, Kenyan crop has recorded an increase of 11.70 mkgs compared to the corresponding period of 2007.
Sri Lankan crop to end May 2010 on the other hand is 10 mkgs below the best year of 2008 and given favourable weather conditions during the balance period of the year Sri Lanka too could come close to the all time record crop of 318.7 mkgs in 2008.
On the Indian front both North as well as the South has recorded positive variances of 7.9 mkgs and 10 mkgs respectively.
All in all, global black tea production in 2010 has increased steadily which could surpass demand pushing prices downwards.
Sri Lankan prices enjoyed a boom period in the second half of 2009 with monthly sale averages in September, October and November exceeding the Rs 400 levels, which would be hard to match in 2010.
A total of 24.0 mkgs was exported in the month of March 2010 compared to 29.0 mkgs during the corresponding period of 2009.
At the end of the first quarter of 2010, the total volume exported is 70.2 mkgs which is approximately 2.5 mkgs above last year. Earnings from tea exports for the quarter show significant gains mainly due to higher export average of Rs 497/84 per kg compared to Rs 407/96 per kg last year, in addition to the higher volume exported at the end of the quarter amounting to 2.5 mkgs.
The five top export destinations of Sri Lankan tea are Russia, UAE, Syria, Iran and Kuwait.
Except for UAE and Syria, where there is a negative variance other traditional markets that have increased their purchases significantly in 2010, are Russia 1.4 mkgs, Kuwait 1.3 mkgs, Turkey 1.1 mkgs,and Libya 1.1 mkgs.
The 3.7 mkgs of Low Growns once again met with attractive demand with prices particularly for the Small Leaf varieties advancing several rupees.
In the Leafy category too the well made Pekoe1s and OPAs met with a fully firm market, whilst teas at the bottom end declined several rupees.
A clear indication that demand is for the well made teas whereas the average/poorer types are being neglected, hence producers should strive to maintain a good leaf standard in order to stay competitive.
There was excellent demand from Russia, Iraq and Iran, whilst Turkey, Dubai, Syria, and other Middle Eastern markets also lent useful support. The main Saudi Arabian buyer was rather quiet.
The 1.2 mkgs of Ex-estate teas on offer met with better demand with both BOP/BOPFs appreciating following quality with the gap between the best and plainer teas widening substantially. Nuwara Eliya BOPs mostly maintained, whilst BOPFs too were firm to a little easier at times.
Uvas mostly maintained following quality, whilst CTCs from all elevations tended low.
Western Teas
Select Best BOPs advanced Rs 5 to Rs 10 on special inquiry, other good invoices were firm to dearer, Below Best sorts gained Rs 5 to Rs 10, plainer varieties were irregularly lower. Select Best BOPFs were firm to dearer, other good invoices gained Rs 5 to Rs 10, Below Best sorts too advanced by a similar margin and at times more, plainer varieties were irregular. Medium BOPs eased Rs 5 to Rs 10, BOPFs shed Rs 10 on average.
Nuwara Eliya Teas
BOPs shed Rs 5 to Rs 10, BOPFs were firm.
Uva Teas
Coloury BOPs shed Rs 15 to Rs 20 and more, others were irregularly lower. Coloury BOPFs advanced Rs 10 to Rs 15, others were Rs 5 to Rs 10 dearer. Udapussellawa BOPs declined Rs 5 to Rs 10, whilst BOPFs were firm.
CTC Teas
Select Best Low Grown PF1s declined Rs 20 to Rs 30, others were mostly firm. BP1s were firm to easier. High & Medium PF1s were firm to easier. BP1s declined Rs 5.
Low Growns
Lower demand. Select Best along with the Best OP1s declined Rs 10 to Rs 15, Below Best and poor sorts too tended lower by a similar margin. Select Best BOP1s appreciated Rs 10 to Rs 20, however the Best and the Below Best types maintained last levels, poor types declined Rs 5 to Rs 10. Select Best OPs were irregularly lower by Rs 5 to Rs 10, Best and the Below Best types too were lower by Rs 5 to Rs 10 and more at times, poor stalky varieties too eased Rs 10 to Rs 15.
Select Best OPAs were fully firm, however the Best types tended lower by Rs 5 to Rs 10 and more following quality, Below Best and poor sorts shed Rs 10 to Rs 15. Select Best Pekoes appreciated Rs 20 to Rs 30, however the balance were fully firm. Select Best Pekoe1s gained Rs 10 to Rs 20, Best types too were dearer by Rs 10 to Rs 15, Below Best and poor sorts were firm. Select Best BOPs maintained last levels, however Below Best and poorer types shed Rs 10. Select Best BOP.SP were firm, however the Best and the Below Best types eased Rs 5 to Rs 10, poorer types too were lower by a similar margin.
Select Best FBOPs were firm, however Best and Below Best types shed Rs 5 to Rs 10, poorer types were lower by a similar margin.
Select Best FBOPF1s were firm, Best and Below Best types were lower to Rs 5 to Rs 10, poorer types too declined by a similar margin. Select Best Tippy varieties met with good demand but were slightly irregularly lower to last, Best types maintained last levels, Below Best and poorer types met with irregular demand.
Off Grades
Select Best liquoring Fngs1s depreciated Rs 5 to Rs 10, Below Best and Best types were lower by and average of Rs 10, poorer sorts were easier by Rs 10 to Rs 15 and more at times.
Select Best and Best BMs declined by an average of Rs 10, whilst poorer BMs were lower to last by Rs 10 to Rs 15.
source - www.dailynews.lk
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