Rain hampers tea production - JKH Tea Market Report

The continuing heavy rainfall both in the Western and the Eastern slopes have hampered tea production in all agro climatic planting districts in the respective sectors. Uva in particular has experienced heavy rainfall over the past few days leading to landslides and disruptions in transport of Green Leaf. Land slides have also caused damage to worker housing with many having to be re-located in temporary housing.

Most of the tea factories are running well below capacity and if this weather continues, factories will be compelled to curtail manufacture until such time crop intakes improve. On the Western Sector the rainfall and overcast conditions will not be conducive for the production of seasonal teas that we normally see at this time of the year.

Today's 0.8 Mkgs of Ex Estate teas met with fair demand. Prices for both BOP and BOPFs commenced low with BOPs on average declining by Rs 10 to Rs 15 and BOPFs by Rs 10. However prices improved fairly sharply for select Best invoices as the sale progressed, particularly during the second half of the sale. A few Nuwara Eliya BOP/BOPFs appreciated, whilst others were irregular. Uva BOP/BOPFs concluded being firm to a few Rupees dearer although commenced firm to easier. Low Grown CTC PF1s appreciated Rs 10 to Rs 15, while High and Medium PF1s too gained Rs 5 to Rs 10 and more.

The current unrest we are witnessing in Egypt could have an adverse impact on prices at future auctions. The 3.3 Mkg of Low Growns that were on offer this week, met with good demand. In the Leafy category, select best BOP1s declined sharply, however all other grades sold at fully firm if not dearer levels. In the Small Leaf category too most grades were fully firm to dearer, other than for some Tippy varieties which declined marginally.

Most planting districts reported lower production due to the inclement weather. However the weather has just cleared with fairly bright mornings. Hence, the crop intakes should now show a gradual increase. It appears that most out markets continue to operate on very low inventories, therefore, the Low Grown market will continue buoyant till the end of the first quarter. There was excellent demand from Russia, Iran, Iraq and Libya, while Dubai, Syria, Jordan, Saudi Arabia and other Middle Eastern countries lent useful support.
 
Western Teas

Select Best BOPs eased Rs 10 to Rs 15, other good invoices shed Rs 10, Below Best and plainer varieties declined Rs 5.

Select Best BOPFs shed Rs 15, other good invoices were firm to Rs 5 easier, Below Best sorts declined Rs 5, plainer varieties were firm to easier. Medium BOPs shed Rs 15 to Rs 20. BOPFs were firm to Rs 5 easier.
 
Nuwara Eliya Teas

A few bright BOPs advanced Rs 10 to Rs 15, others were firm. BOPF advanced Rs 15 to Rs 20 on average.
 
Uva Teas

Coloury BOPs advanced Rs 10, others eased by a similar margin. Coloury BOPFs gained Rs 10 to Rs 15, others were firm. Uda Pussellawa BOPs shed Rs 5. BOPF eased Rs 10.
 
CTC Teas

Select Best Low Grown PF1s advanced Rs 10, others gained Rs 15 to Rs 20 on average. BP1s declined Rs 5. High and Medium PF1s advanced Rs 5 to Rs 10. BP1s shed Rs 10 to Rs 15 on average.
 
Low Growns

Good demand. Select Best OP1s were firm to Rs 5 to Rs 10 dearer at times, Best types along with the clean Below Best varieties too gained Rs 10 on average, poor types were irregularly dearer by Rs 5 to Rs 10.

Select Best BOP1s declined sharply by Rs 30 to Rs 50, Best types too were lower by Rs 10 to Rs 15, Below Best and poor sorts maintained last levels. Select Best OPs appreciated Rs 10 to Rs 15, Best types were dearer by Rs 5 to Rs 10, Below Best and poor sorts were steady.

Select Best along with the Best OPAs gained Rs 5 to Rs 10, Below Best and poor sorts were firm on last levels. Select Best Pekoes shed Rs 10 to Rs 20 following quality, however the balance appreciated Rs 10 to Rs 15 and more as the sale progressed. Select Best Pekoe1s shed Rs 10 to Rs 20, however the balance were firm to Rs 5 to Rs 10 dearer. Select Best and Best BOP / BOP. SPs advanced Rs 5 to Rs 10, Below Best types were firm, poorer types too maintained last levels.

Select best FBOPs were firm to dearer at times, Best types advanced Rs 5 to Rs 8. Below Best types were firm, poorer types gained Rs 5 to Rs 8. Select Best FF1s were firm, Best types gained Rs 5 to Rs 8, Below Best types were firm, poorer types gained Rs 5.

Select Best tippy varieties maintained last levels, Best types advanced a few rupees above last, Below Best and Poorer sorts were firm.
 
Off Grades

Select Best and Best liquoring Fngs1s were firm on last levels, Below Best and Poorer sorts were irregularly dearer by Rs 5 Select Best and Best BMs were dearer by Rs 10 and more at times. Below Best and Poorer sorts were firm on last levels.

All BPs were firm on last levels. Select Best and Best BOP1As were dearer by Rs 10 to Rs 15 and more at times, Below Best and poorer BOP1As too were dearer by similar margins.
 
Dust

Select Best Dust1s eased Rs 5 while the Best and Below Best Dust1s appreciated Rs 10 to Rs 15 and more towards the later part of the sale. Clean secondaries were firm while the balance appreciated Rs 5 to Rs 10. Best Low Grown Dust / Dust1s gained Rs 5 to Rs 10 while the balance were irregularly lower.

source - www.dailynews.lk