As expected, Sri Lanka Tea Crop for the month of February at 21.6 mkgs shows a decline of 1.9 mkgs (-8 percent) compared with the corresponding month of 2010.
To end February of 2011 the shortage on last year is around 9.3 mkgs (-17.97 percent).
On the global front supply is continuing to tighten up in most major producing countries due to inclement weather.
Supply from Kenya is expected to constrict as very little rain is forecast and the much awaited long rains are expected to be highly depressed as reported by their Meteorological Department which could trigger high prices of food, electricity and water shortages.
North and South India have also recorded negative variances compared to previous year with short falls of 2.3 mkgs and 3.9 mkgs respectively. Most planting districts in Sri Lanka have recorded much drier weather in the month of March coupled with intermittent showers, conditions which are more conducive for crop intakes. Reports from the plantations suggest that March crop would exceed last year’s crop of 20.4 mkgs.
Quality from the Western Sector has shown a marked decline compared to previous seasons, due to regular showers in February and March and consequently only a handful of Invoices bordering on seasonal character will be on offer. The global shortage in the first quarter of 2011 was expected to impact on prices, but unfortunately the volatile situation in the Middle East and the devastation in Japan following the earthquake and tsunami may in fact reverse this trend.
Today’s Ex Estate teas comprising of 1.14 mkgs met with lower demand for the majority of the teas on sale with a limited number of brighter teas on offer and buyers unable to source the required quantity of seasonal teas. A few Western BOPs surpassed Rs 500, the balance select Best invoices were irregular.
The Below Best and plainer invoices were barely steady and declined Rs 5 to Rs 10 and more on average. The BOPFs too were of a weaker market with only a handful of top end invoices selling well.
All others declined Rs 10 to Rs 15. Nuwara Eliya, once again continued its upward trend for both BOP and BOPFs with a few brighter invoices touching Rs 500.
There was an All Time Record established for a BOPF grade from Pedro Estate with an invoice of Lovers Leap selling at Rs 500. This line of tea was purchased by M/s Elink Schuurman Ceylon (Pvt) Ltd.
Uva BOPs were firm to marginally easier, whilst BOPFs declined Rs 10 to Rs 15 and mostly sold Rs 15 to Rs 20 below its counter part. Best Low Grown CTC PF1s were firm to a little easier, whilst others declined Rs 15 to Rs 20. A few BOP1s on offer sold well appreciating Rs 5 to Rs 10. High and Medium PF1s declined sharply by Rs 20 and more with a number of invoices remaining unsold for want of bids. Brokens too were of a easier market.
There was good support from UK, Japan and Continent for liquors with some brightness and hint of seasonal character, whilst the tea bag sector too lent some support. Russia was a bit selective.
The 3.4 mkg of Low Growns that were on offer this week, met with less demand, particularly for the Small Leaf varieties.
Iran, the major buyer for Tippy varieties commenced their New Year holidays this week, which will go on till the second week of April 2011.
Customarily, most business establishments during this period with little or no purchases made. Hence, the Small Leaf market will continue to be sluggish during this period.
The unrest in Libya has also effected their purchases in Colombo with some of the major buyers being rather subdued which was the main reason for the OP/OPA grade to decline as much as Rs 15 to Rs 20 this week. With the uncertainty prevailing in the Middle East and also the Iranian New Year holidays, it is un-likely that the Low Grown prices would see much of a change in the next two to three weeks.
Western teas
A few Select Best BOPs advanced substantially following special inquiry, other good invoices were barely steady and declined Rs 10, Below Best sorts shed Rs 10 to Rs 15, Plainer varieties eased Rs 5 to Rs 10.
A few Select Best BOPFs were firm whilst the others declined Rs 5 to Rs 10 and more, Below Best sorts eased Rs 10 to Rs 15 on average, Plainer varieties shed Rs 5 to Rs 10. Medium BOPs advanced Rs 10. BOPFs shed Rs 5 to 10 on average.
Nuwara Eliya teas
BOPs advanced Rs 30 to Rs 40 and more whilst the BOPFs gained Rs 40 to Rs 60 and more at times.
Uva teas
BOPs gained Rs 5 to Rs 10 and more at times. BOPFs eased Rs 10. Udapussellawa BOPs shed Rs 5 to Rs 10 whilst the BOPFs eased Rs 15 to Rs 20 on average.
CTC teas
Low Grown CTC PF1s shed Rs 15 to Rs 20 and more at times.
BP1s were firm. High and Medium PF1s declined Rs 10 to Rs 15 and more as the sale progressed. BP1s shed Rs 10 to Rs 15, with a large volume remaining unsold.
Low growns
Lower demand. Select Best OP1s shed Rs 10 on average, Best types were firm to Rs 5 to Rs 10 lower at times, Below Best and Poor sorts too were lower by Rs 10 to Rs 15. Select Best BOP1s eased Rs 10 to Rs 20, Best types declined sharply by Rs 20 to Rs 30, Below Best and poor sorts too were lower by Rs 10 to Rs 15.
Select Best along with the Best ops shed Rs 10 to Rs 20, Below Best and poor sorts too were lower by Rs 10 to Rs 15.
Select Best OPAs were lower by Rs 10 to Rs 20 and more at times, the balance too eased by Rs 10 to Rs 15.
Select Best Pekoes shed Rs 20 to Rs 30 Best and Below Best types were firm to Rs 5 to Rs 10 lower following quality, flaky types were irregularly lower by Rs 5 to Rs 10. Below Best Pekoe1s appreciated Rs 20 to Rs 30, however the balance were firm to lower by Rs 5 to Rs 10.
Select Best BOP/BOPSP were lower by Rs 5 to Rs 10, Best types were lower by Rs 10 per kg, Below Best sorts were lower by Rs 10, poorer sorts appreciated a few rupees above last.
Select Best and Best FBOP/FBOPF1s were lower by Rs 10 to Rs 20 and at times more as the sale progressed, Below Best types were lower by Rs 10 to Rs 15, poorer sorts maintained last levels. Select Best and Best Tippy varieties declined substantially on last levels, Below Best and poorer sorts too were lower to last.
Off grades
Select Best and Best liquoring Fngs1s depreciated Rs 10 to Rs 15, whilst the Best and Below Best types were lower by Rs 10. Select Best and Best BMs declined Rs 10 to Rs 15, whilst the poorer sorts met with good demand and appreciated Rs 10 to Rs 15. All BPs sold at firm levels. All Low Grown Fngs were firm to dearer by Rs 5. Select Best BOP1As along with the best were firm to irregularly lower by Rs 5, Below Best were firm on last levels, poorer BOP1As eased Rs 5 to Rs 10 and more at times.
Dust
Select Best Dust1s were firm, a few invoices in the Best and Below Best category maintained last levels whilst the balance declined Rs 20 to Rs 25. All secondary Dusts were firm. Best Low Grown Dusts and Dust1s appreciated Rs 10 to Rs 15 whilst the balance were firm.
source - www.dailynews.lk
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