John Keells Tea Market Report: Attractive gains for BOPs

This week Ex-estate quantity of 0.76 mkgs met with fair demand. The liquoring BOP and BOPF from the Western districts were well received and the market was exceptionally strong and dearer at the close.

This however, does not necessarily augur well for the ensuing sales, as the demand could vane once urgent orders are completed. In recent weeks, buyers appeared to have been purchasing based on demand, shipment opportunities, machine availability for bagging etc. hence the fluctuation from week to week.

Considering that we are now into October, it was encouraging to see the best BOPs reaching Rs 400 and the best BOPF selling between Rs 450 and Rs 500. Due to the limitation of the BOP offerings, price gains were attractive and due to the gap between the two grades, some of the smaller invoices may have been picked up for BOPF blends.

The few Nuwara Eliya BOP's on offer gained Rs 10 to Rs 15 whilst BOPF's were firm to Rs 5 to Rs 10 dearer. Uva's were mostly firm following quality. High and Medium CTC's appreciated by Rs 10 to Rs 15, however Low grown PF1's declined by Rs 30 to Rs 40.

The 3.3 mkg of Low Growns that were on offer this week met with good demand, but at slightly lower levels, particularly for the Small Leaf varieties. In the Leafy category, Russia continued quite active whilst Syria too bid strongly for the Pekoe varieties.

The main Saudi Arabian buyer continued rather quiet.

The main Iraqi buyer continued subdued hence, the secondary and the poorer OPAs declined several rupees. In the Small Leaf category, the main Iranian buyers continued to be selective for FBOP/FF1s whilst the Tippy varieties barely maintained last levels. In the recent past we have seen good inquiry by some Continental Buyers for BOP1/OP1s and this week too prices for these grades were attractive.

The well made OP1s still continue to command a premium over the other grades with the best still maintaining the Rs 550 Rs 600 price range.

Sri Lankan tea averages for the month of September 2010 at Rs 376.39 has once again recorded a substantial negative variance of Rs 54.92 (12.73 percent) over the corresponding month of 2009.

CTC High and Medium elevation averages have suffered the most with decreases of 19.34 percent and 22.94 percent, respectively. The to date National average to end September at Rs 367.51 is Rs 16.10 above last year, same period, mainly due to the strong showing in the first half of the year.
 
Western Teas
Select Best BOPs advanced Rs 15 to Rs 20 and more following special inquiry, other good invoices gained Rs 10, Below Best and plainer varieties were Rs 10 dearer.

Select Best BOPFs gained Rs 20 and more, other good invoices advanced Rs 10 and more as the sale progressed, Below Best sorts were firm and advanced Rs 10, plainer sorts shed Rs 5 to Rs 10 on average. Medium BOPs were firm, whilst the BOPFs advanced Rs 10 to Rs 15.
 
Nuwara Eliya

Teas Brighter BOPs gained Rs 10 to Rs 15, others were Rs 10 dearer. BOPFs were firm to dearer.
 
Uva Teas

A few Select BOPs advanced Rs 20 to Rs 30, others were firm to Rs 10 dearer. Select Best BOPFs shed Rs 10, others gained by a similar margin. Uda Pussellawa BOPs advanced Rs 10 to Rs 15, whilst the BOPFs gained Rs 10 on average.
 
CTC Teas

Low Grown PF1s shed Rs 20 to Rs 30. BP1s eased Rs 10. High & Medium PF1s were firm to Rs 10 dearer. BP1s maintained last levels.
 
Low Growns

Fair demand. Select Best OP1s were firm to Rs 5 to Rs 10 lower at times, Best and Below Best types were firm to Rs 5 to Rs 10 dearer following quality, poor types were steady. Select Best BOP1s maintained last levels, however the Best types shed Rs 10 to Rs 15 and more at times, Below Best and poor sorts were firm. Select Best OPs shed Rs 10 to Rs 20, the Best types were fully firm, however the Below Best and poor sorts were irregularly lower by Rs 5 to Rs 10. Select Best OPAs declined Rs 10 on average, Best types were steady, Below Best varieties appreciated Rs 5 to Rs 10, poor types were firm on last levels.

Select Best Pekoes appreciated Rs 5 to Rs 10, Bold Pekoe varieties appreciated Rs 5 to Rs 10 and more at times, clean flaky varieties too were dearer by Rs 3 to Rs 5. Shotty Pekoe1s gained Rs 10 to Rs 20 and more at times, however Best types eased Rs 10 to Rs 15 following quality, the balance maintained last levels. Select Best and Best BOP/BOP SP shed Rs 10 per kg, Below Best and poorer sorts were easier by a similar margin.

Select Best and Best FBOP/FBOPF1s shed Rs 10 to Rs 20 and at times more towards the latter part of the sale, Below Best and poorer sorts too declined by a similar margin.

Select Best and Best Tippy varieties sold at attractive levels, however prices tended a little lower to last and at times remained difficult of sale due to suitable offers, Below Best and poorer sorts too shed on last levels.
 
Off Grades

Select Best liquoring Fngs1s were dearer by Rs 10 on average ,whilst the Best and Below Best too were dearer by Rs 5 to Rs 10 on last levels.

All BPs were lower by Rs 20 to Rs 25. Select Best and Best BMs sold on last levels, whilst the Below Best and poorer sorts shed Rs 10 to Rs 15 and more at times.

All Low Grown Fngs were lower by Rs 5. Select Best BOP1As were firm to lower by Rs 5 to Rs 10, whilst the Best and Below Best too shed by Rs 20 to Rs 30 and more with low demand. Poorer sorts too followed a similar trend.

source - www.dailynews.lk