Monday, December 13, 2010

John Keells Tea Market Report: Averages show negative variance

The Sri Lankan averages for November once again show a negative variance of Rs 4.50 (1.17 percent) compared to the corresponding period of last year. The High Grown as well as Medium has recorded shortfalls of Rs 38.71 (9.60 percent) and Rs 16.41 (4.65 percent) respectively, whereas the Low Grown has recorded a positive gain of Rs 09.19 (2.39 percent). The Low Grown recording a positive variance for the month is encouraging considering that Sri Lankan averages in the second half of last year was the highest on record. On closer analysis of the November averages, we find that CTC High and Uva High have suffered the most with negative variances of Rs 59.30 (- 14.52 percent) and Rs 37.77 (- 10.44 percent) respectively.

Despite the negative variances the to date average of Rs 369.38 to end November is Rs 09.87 (2.75 percent) above last year and is also the highest on record. We could expect to see Sri Lankan Tea Sale Averages in 2010 achieving an All Time High compared to the previous best of Rs 360.45 in 2009.

The unusual amount of rain that is being experienced is expected to retard growth, and the December crop could be below the corresponding month of last year. However, November production has been satisfactory, and could reflect a slight positive variance. Given the excellent crop in the first ten months, the yearly production at the end of December, is estimated to reflect an all time record, in excess of 320 Mkg.

Last week’s excitement in the auction room, gave way to less vocal bidding for the BOP grade, which witnessed price drops in the best and below best categories. Similar varieties of BOPF however advanced Rs 5 to Rs 15. This has resulted in the reduction of the gap between the prices of BOP and BOPF, as well as the gap between the top and the bottom of the market.

The 3.6 Mkg of Low Growns that came under the hammer this week met with excellent demand. In the Leafy category, BOP1s lead the way with the select best on offer appreciating sharply with a BOP1 invoices of Sithaka Tea Factory establishing an all time record price of Rs 710 per kg. The buyer of this line was Messrs Regency Teas. The below best varieties too advanced several rupees. The wiry OP1s on offer were mainly firm, however the below best and the poorer sorts eased marginally, particularly towards the latter part of the sale.

The OP and OPAs were mainly firm, whilst the Pekoes too maintained previous levels.

In the small leaf category, prices for FBOPs and FF1s were mainly dearer, whilst the Tippy varieties too appreciated in value. All in all another excellent sale for the Low Growns as far as prices are concerned, for the time of year.

The current inclement weather experienced in the Low grown Planting Districts have resulted in a drastic decline in crop intakes which will have a negative impact on the volumes on offer at future auctions.
 
Western Teas

Select Best BOPs declined Rs 5 to Rs 10, other good invoices shed Rs 10 to Rs 15 on average, Below Best and plainer varieties eased Rs 15 to Rs 20. Select Best BOPFs gained Rs 5 to Rs 10, other good invoices were firm to dearer, Below Best and plainer varieties advanced Rs 5 to Rs 10 on average. Medium BOPs shed Rs 15 to Rs 20, while the BOPFs advanced Rs 5 to Rs 10.

Nuwara Eliya Teas  BOPs shed Rs 20 to Rs 30, while the BOPFs eased Rs 5 to Rs 10.
 
Uva Teas

BOPs were firm to marginally easier. BOPFs declined Rs 5 to Rs 10. Udapussellawa BOPs shed Rs 5, BOPFs were firm to easier.
 
CTC Teas

Select Best Low Grown PF1s gained Rs 10, others advanced Rs 10 to Rs 15 on average. BP1s were firm. High and Medium PF1s advanced Rs 5 to Rs 10 as the sale progressed. BP1s gained Rs 10 to Rs 15.
 
Low Growns

Good demand. Select Best OP1s along with few selected OP1s in the Best category appreciated Rs 5 to Rs 10 and more, however other Best OP1s were irregularly lower by Rs 5 to Rs 10, clean Below Best and poor sorts maintained last levels, poor types were lower by Rs 5 to Rs 10. Select Best BOP1s along with the Best types advanced sharply by Rs 10 to Rs 20 and more at times, Below Best and poor types were steady.

Select Best and Best OPs appreciated Rs 10 to Rs 15 and more following quality, Below Best and poor types were firm. Select Best OPAs advanced Rs 10 to Rs 20 and more at times, clean Best varieties were irregularly dearer by Rs 5 to Rs 10, the balance were firm on last levels. Select Best Pekoes were mainly firm, the Best and Below Best types were irregularly dearer by Rs 5 to Rs 10, flaky types were steady.

Select Best Pekoe1s appreciated Rs 10 to Rs 20, the balance were fully firm. Select Best BOP/BOP SP moved up Rs 5 to Rs 10, Below Best types too followed a similar trend, poorer sorts were firm. Select Best FBOPs advanced Rs 20 and at times more towards the latter part of the sale, Best and Below Best types gained Rs 5 to Rs 10. Select Best and Best FBOPF1s gained Rs 10, Below Best types were irregular, poorer sorts were firm. Select Best and Best Tippy varieties met with improved demand and advanced substantially above last, Below Best types too gained Rs 10 to Rs 15, poorer sorts were firm.
 
Off Grades

Select Best liquoring Fngs1s were dearer by Rs 5, while the Best and the Below Best types appreciated Rs 10 to Rs 15, poorer sorts were dearer by Rs 10 to Rs 15. Select Best and Best BMs eased by Rs 10 Best and the Below Best types were firm to dearer by Rs 5, poorer sorts appreciated Rs 10 All BPs were dearer by Rs 10. All Low Grown Fngs sold at firm levels. Select Best BOP1As were firm to dearer by Rs 10 to Rs 15, while the Best and the Below Best too appreciated by Rs 10 to Rs 20, poorer sorts too were dearer by an average of Rs 15.
 
Dust

Select Best and the Best Dust1s were firm, while the Below Best types gained Rs 5 to Rs 10, poorer sorts were firm to Rs 5 easier. Clean Secondary Dust appreciated Rs 20 to Rs 25, while the Below Best types gained to a lesser extend, poorer sorts declined Rs 5 to Rs 10. Best Low Grown Dust and Dust1s shed Rs 10 to Rs 15, while the Below Best types gained Rs 5 to Rs 10, balance were irregularly lower.

source - www.dailynews.lk

No comments: