Sri Lanka's Tea Sale Averages for July 2011 at Rs 339.24 is Rs 5.13 lower compared to July of last year. Low and Medium Grown continue to show negative variances whereas High Grown have recorded a positive variance of Rs 4 for the month.
Despite the recent wave of political upheaval in the Middle East which has impacted negatively on Low Grown tea and an overall price decline over the past few months, Sri Lanka averages for 2011 to end July remains competitive compared to the corresponding period of last year.
As at end July 2011 the total National Average of Rs 366.07 is only marginally lower (0.37 cents) compared to 2010, same period.
Most of the Black Tea producing countries of East Africa continue to record lower production compared to the same period of last year owing to dry weather conditions.
It is reported that Kenya which is the world's biggest exporter of Black Tea has recorded a 16 percent production decline in the first six months of 2011. The Kenyan Tea Board expects production to drop 10% this year. Tea producing countries of East Africa has suffered from two poor rainy seasons that has caused one of the worst droughts since 1950 - 51 according to the United Nations Food and Agricultural Organization.
Production from the Asian region is more encouraging with North India recording the highest increase of 11.2 mkgs followed by Sri Lanka at 1.1 mkgs and Bangladesh at 0.72 mkgs to end June 2011.
Climate change which we are witnessing today will in time, affect agricultural crops throughout the world. In Kenya climate change is expected to drastically reduce Kenya's Tea production over the next 40 years.
Scientists from the International centre for Tropical Agriculture said during a global conference that land under tea will reduce by 42 percent by the year 2050.
"Climate change not only brings bad news, but also opens up new opportunities". In time to come it is widely believed that suitability of tea production will be enhanced in higher altitudes.
Last week's 1.3 mkgs of Ex-Estate teas on offer met with irregular demand. Select Best Western High Grown BOP/BOPFs sold well, whilst in the Below Best category BOPs were dearer following quality by Rs 10 to Rs 15 and more at times, whereas BOPFs declined by a similar margin.
The plainer teas too were irregular and tended lower.
Nuwara Eliya's continued with poor demand with the bulk of the invoices still remaining below Rs 300. Uva's appreciated following quality and special inquiry for teas with useful brightness and some seasonal character with a handful of invoices selling above Rs 500. Low Grown CTC PF1s were firm to easier by Rs 10 to Rs 15, whilst High and Medium types eased by a similar margin and at times difficult of sale.
The 3.5 mkg of Low Grown teas that came under the hammer this week met with widespread demand.
The Tippy varieties led the way with good price improvements. FBOP/ FBOPF1s too sold well. Pekoes were a dearer feature, whilst BOP1/OP1s too continued to sell at attractive levels.
The Best OP/OPAs shed a few Rupees from previous weeks very high levels, others too met with a slightly lower market. All in all another satisfactory sale.
Western Teas
Select Best BOPs advanced Rs 5 to Rs 10 and at times more following quality, other good BOPs were irregularly dearer, Below Best sorts were firm to dearer whilst the plainer varieties were irregularly lower. Select Best BOPFs advanced Rs 5 to Rs 10 following quality, other good invoices were irregularly dearer, Below Best sorts declined Rs 5 to Rs 10 on average, plainer varieties eased by a similar margin and at times more. Medium BOP/BOPFs shed Rs 5 to Rs 10.
Nuwara Eliya Teas
BOPs were barely steady with a fair volume remaining unsold. BOPF were firm.
Uva Teas
A few bright BOPs sold well on special inquiry, others were firm to irregular. Bright BOPF were irregular following quality, others eased Rs 10 to Rs 15 on average.
CTC Teas
Select best Low Grown PF1s gained Rs 10, others declined by a similar margin and more. BP1s were irregularly lower. High and Medium PF1s shed Rs 15 to Rs 20 on average with a fair volume remaining unsold. BP1s declined Rs 10 to Rs 20.
Low Growns
Good demand. Select Best OP1s were irregularly dearer by Rs 3 to Rs 5, Best OP1s too gained Rs 5 to Rs 10, however Below Best and poor types tended lower by Rs 5 to Rs 10 following quality. Select Best BOP1s appreciated Rs 10 to Rs 15, whilst the balance maintained last levels.
Select Best OPs maintained last levels however the Best varieties declined Rs 5 to Rs 10 and more at times, clean Below Best types appreciated Rs 5 to Rs 10 whilst the balance were steady, poor sorts eased Rs 5 to Rs 10. Select Best OPAs declined sharply by Rs 20 to Rs 30, Best types too tended lower by Rs 10 to Rs 15, clean Below Best varieties gained Rs 5 to Rs 10, poor types shed Rs 5 to Rs 10. Select Best Pekoe/Pekoe1s declined Rs 20 to Rs 40, other Pekoe varieties were firm on last levels. Select Best BOP/BOP.SPs moved up Rs 10 and at times more, Best types were dearer by Rs 5, Below Best sorts were slightly lower to last, poorer types were irregular.
Select Best FBOPs advanced Rs 10, Best types gained Rs 5 to Rs 8, Below Best types gained Rs 5, poorer sorts were lower by Rs 5. Select Best FBOPF1s maintained last levels, Best and Below Best types were irregularly lower to last, poorer types barely maintained last levels. Select Best and Best tippy sorts met with good demand and sold at attractive levels, Below Best and poor sorts were irregularly lower to last.
Off Grades
Select Best and Best liquoring FNGS1s were firm to dearer by Rs 5 whilst the Below Best and poorer sorts sold at firm levels. Select Best and Best BMs sold at firm levels, whilst the Below Best and poorer sorts were firm to dearer by Rs 5.
All Low Grown Fngs were lower by Rs 10. All BPs appreciated by Rs 10. Select Best and Best BOP1As were firm on last levels, whilst Below Best along with the poorer sorts appreciated Rs 5 to Rs 10.
Dust
Select best Dust1s were firm, whilst the Best Dust1s were irregularly dearer, Below Best and poorer sorts shed Rs 10 to Rs 15. Clean secondaries were firm whilst the balance shed Rs 10 to Rs 15. Best Low Grown Dust/Dust1s were firm whilst the balance shed Rs 10 to Rs 15.
source - www.dailynews.lk
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