Sri Lankan tea prices have been volatile over the past four years with prices in 2007, 2008, 2009 and 2010 recording positive variances of 10.9 percent, 13.77 percent, 2.74 percent and 5.91 percent respectively.
Whilst significant increases have been recorded in the years 2008 and 2009, partly due to growth in consumption outpacing growth in production, the positive gains in 2010 and the first quarter of 2011 have been marginal.
The first quarter average in 2011 saw prices reach 5.91 percent above the average price of 2010, some 37.59 percent above price levels of the first quarter of 2007.
Reports from plantation districts from all elevations suggest another bountiful harvest for April 2011 which is likely to exceed, the crop harvested when compared with the corresponding month of 2010.
We have already witnessed a record crop of 33.3 mkgs in March 2011.
These high productions could lead to a supply and demand imbalance and along with a drop on product quality could serve both to depress prices and reduce returns to producers.
Last week's Ex Estate market comprising 1.5 Mkgs. met with fair demand with prices for Western BOPs in the Select Best and Best category declining Rs 10 to Rs 15 on average, whilst the Below Best types commenced firm and improved as the sale progressed.
The bottom end of the BOP market was irregular.
The BOPFs on the other hand except for a few Select Best invoices that sold well, all others were mostly lower declining Rs 10 to Rs 15 on average. A few invoices, however where the leaf appearance differentiated in quality were dearer to last week. Nuwara Eliya BOPs declined as much as Rs 20 to Rs 30, whilst BOPFs too shed by a similar margin. Semi leafy teas from this region, however were irregularly dearer.
Uva BOPs were irregular, whilst BOPFs tended lower with a number of invoices selling below Rs 300.
The Best Low Grown CTC PF1s were firm to dearer at times, whilst others declined Rs 10 to Rs 15 High and Medium types too were of a lower market.
There was fair demand from UK, Japan and the Continent whilst the tea bag sector and Russia lent some support.
The 3.5 mkg of Low Growns that were on offer this week met with fair demand, however prices continued to be a little weaker than the previous week. In the Leafy category, BOP1/OP1s shed Rs 5 to Rs 10 whilst Pekoes and OPAs declined Rs 20 to Rs 30. In the Small leaf category the better FBOPs and Tippy varieties maintained last levels, however all others were lower by Rs 10 to Rs 15.
There was good demand from Russia, Iran, Iraq, Libya, Syria and Saudi Arabia.
Western Teas
A few Select Best BOPs were irregularly dearer, other good invoices shed Rs 10. In the Below Best category, clean leafy sorts advanced Rs15 to Rs 20, others shed Rs 10, plainer varieties declined Rs 10 to Rs 15 on average. Select Best BOPFs advanced Rs 10 to Rs 15 on special inquiry, other good invoices eased by a similar margin, Below Best sorts shed Rs 5 to Rs 10, plainer varieties eased Rs 10 to Rs 15 and more at times. Medium BOPs were irregular. BOPFs declined Rs 15 to Rs 20.
Nuwara Eliya Teas
BOPs shed Rs 20 to Rs 30, whilst the BOPFs too eased by a similar margin and more for the poor leaf sorts.
Uva Teas
BOPs declined Rs 20 to Rs 30 and more, whilst the BOPFs eased Rs 10 to Rs 15 on average. Uda Pussellawa BOPs declined Rs 10 to Rs 15 on average, whilst the BOPFs shed Rs 15 to Rs 20 and more for the poor leaf sorts.
CTC Teas:
A few Select Best PF1s advanced following special inquiry, most others declined Rs 20 and more with a large volume remaining unsold. BP1s were firm to irregular. High and Medium PF1s shed Rs 10 to Rs 15 on average. BP1s were firm to marginally easier.
Low Growns
Lower demand. Select Best OP1s eased Rs 5 to Rs 10, however Best types were firm to Rs 5 to Rs 10 dearer, Below Best and poor sorts declined Rs 10 to Rs 20 following quality. Select Best along with the Best BOP1s maintained last levels, stalky Below Best and poor varieties eased Rs 5 to Rs 10.
Select Best OPs declined Rs 10 on average, Best and Below Best types were lower by Rs 10 to Rs 15, poor types too declined by a similar margin. Select Best OPAs declined sharply by Rs 20 to Rs 40, Best types too were lower by Rs 10 to Rs 15, Below Best sorts were irregularly lower by Rs 5 to Rs 10, poor types shed Rs 15 to Rs 20.
Select Best Pekoes declined sharply by Rs 40 to Rs 60 following quality, balance too were lower by Rs 10 to Rs 15. Select Best and Best Pekoe1s shed Rs 15 to Rs 20, Below Best and poor sorts eased Rs 5 to Rs 10. Select Best BOP/BOPSP maintained last levels, Best types were firm, Below Best and poorer sorts shed Rs 10 and more at times. Select Best wiry FBOPs maintained last levels. Best types were firm, Below Best and poorer types shed Rs 10 to Rs 15 and at times more. Select Best FBOPF1s maintained last levels, Best types eased Rs 5 to Rs 8, Below Best sorts too were lower by a similar margin, poorer types shed Rs 5 to Rs 10. Select Best Tippy sorts maintained last levels, however the balance on offer declined on last levels.
Off Grades
Select Best liquoring Fngs1s depreciated by Rs 30 to Rs 35 and more at times, whilst Below Best and poorer sorts were lower by Rs 30. Select Best and Best BMs depreciated Rs 10 to Rs 15, whilst the poorer sorts were lower by Rs 10 from last levels. All BPs depreciated Rs 20 and more at times. All Low Grown Fngs were lower by Rs 15 to Rs 20.Select Best and Best BOP1As were lower to last by Rs 15 to Rs 25, whilst Below Best and others too declined by Rs 25 to Rs 30 and more as the sale progressed.
Dust
Select Best Dust1s were firm, whilst the Best Dust1s gained Rs 5 to Rs 10, Below Best and poorer sorts declined Rs 10 to Rs 15 and more towards the latter part of the sale. Clean secondaries shed Rs 10 to Rs 15, whilst the balance declined sharply by Rs 20 to Rs 30. Best Low Grown Dust/Dust1s eased Rs 5, whilst the balance declined Rs 15 to Rs 20.
source - www.dailynews.lk
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