Good demand for Low Growns

Despite a downturn in production in July, tea production is on course to achieve last year’s All Time Record.

The production for July 2011 at 24.1 mkgs is a 12 percent reduction compared to the corresponding period of last year.

The decline is mainly from tea produced in the Medium and Higher Elevations where weather conditions have not been conducive for growth.

Overall the 196.7 mkgs produced in the first seven months in the year represents a marginal decrease of 0.53 percent over last year.

Production from all elevations is expected to peak in the last quarter of the year and given good weather conditions, we could expect to see yet another good year.

A noteworthy feature of this year’s production has been the increase of 3.19 percent recorded by High Growns compared to the corresponding period of last year.

On the Global front Kenya and South India continued to record low intakes which are not surprising as it is a pattern we often see at this time of the year whereas North India has maintained a significant increase over the previous season.

As at end June, Kenya’s crop deficit amounts to 34.55 mkgs with South India recording a negative variance of 4.6 mkgs.

Good growing conditions in India should see North Indian crop for July registering a slightly higher crop than last year, although quality is on the decline.

Kenyan July crop is yet to be released. Good growing conditions with some heavy showers have been reported from the West of Rift whereas the East of Rift continues sunny and dry with low intakes.

China has been experiencing very warm conditions and crops are reported moderate, whilst intakes in Vietnam are low. Last week’s Ex Estate weight of 1.12 mkgs of Ex Estate teas on offer met with fair demand.

Select Best BOP/BOPFs tended lower, whilst Below Best types were mostly firm.

The plainer types were firm to a little dearer.

There was better interest for Nuwara Eliya BOP/BOPFs on offer and price gains of Rs 5 to Rs 10 on average were registered.

Uva invoices with improved seasonal character sold well gaining Rs 50 to Rs 100 with a top price for a BOP being sold at Rs 900. Others fluctuated between Rs 400 to Rs 800 on special inquiry.
The plainer teas however barely maintained.

Low Grown CTC PF1s continued with good demand appreciating Rs 10 to Rs 15 with the top end now selling between Rs 560 to Rs 580.

High and Medium types too were Rs 5 to Rs 10 dearer, whilst brokens appreciated substantially by Rs 20 to Rs 30.

The tea bag sector lent fair support, whilst Russia was little selective. UK, Japan and Continental buyers were active following quality.

The 3.2 mkg of Low Growns that were on offer this week met with good demand.

In the Leafy category, the best BOP1/OP1s continued to sell at attractive levels. Pekoes advanced Rs 10 and more, however the below best OPAs declined as the sale progressed.

In the Small Leaf category, once again FBOP/FF1s continued to sell well, however, some Tippy varieties declined in value.

Considering the turmoil in Syria, Libya and also the month of August being the fasting period in the Middle East, prices could be quoted as quite satisfactory.

Western Teas

Select Best BOPs were barely steady, other good invoices gained Rs 10, Below Best sorts were firm to irregular, plainer varieties gained Rs 5 and more at times.

Select Best BOPFs declined Rs 10 to Rs 15, other good invoices were firm to easier, Below Best sorts advanced Rs 5, plainer sorts gained Rs 5 to Rs 10 on average. Medium BOPs advanced Rs 10. BOPF
were firm to easier.

Nuwara Eliya Teas

BOPs were firm to Rs 10 dearer. BOPF gained Rs 10 to Rs 15 on average.

Uva Teas

Bright BOP/BOPFs with seasonal character advanced substantially on special inquiry, others maintained last levels. Uda Pussellawa BOPs were irregularly dearer whilst the BOPF shed Rs 10 to Rs 15 on average.

CTC Teas

Select Best Low Grown PF1s gained Rs 10 to Rs 20, others were firm. BP1s advanced by Rs 20 and at times more.

High and Medium PF1s were firm to Rs 10 dearer. BP1s gained Rs 10 to Rs 20 on average.

Low Growns

Fair demand.

Select Best along with the Best OP1s were steady, however Below Best and poorer sorts eased Rs 5 to Rs 10.

Select Best BOP1s appreciated Rs 20 to Rs 40, whilst the Best were dearer by Rs 5 to Rs 10, clean Below Best types advanced Rs 10 to Rs 15, others were irregularly lower by Rs 5 to Rs 10.

Select Best OP / OPAs appreciated Rs 20 to Rs 40, however the Best types declined Rs 5 to Rs 10, Below Best and poorer sorts were firm on last levels.

Select Best Pekoes gained Rs 20 to Rs 40, bold Pekoe varieties too gained Rs 5 to Rs 10 and more at times, flaky types maintained last levels.

Shotty Pekoe1s were fully firm, Best types were firm to Rs 3 to Rs 5 lower at times, the balance were steady.

A few Select Best BOPs met with improved demand and advanced Rs 10 to Rs 20 and at times more.

The Best types too advanced Rs 10, Below Best sorts were firm, poor sorts shed Rs 5 to Rs 10. Select Best and Best BOP.SPs maintained last levels, Below Best and poor sorts were lower by Rs 10. Select Best wiry FBOPs moved up Rs 10 to Rs 20 and at times more.

Best types too gained Rs 10 to Rs 15, Below Best sorts advanced Rs 5 to Rs 10, poorer types however were lower to last.

Select Best and Best FBOPF1s moved up Rs 5 to Rs 10, Below Best sorts were firm, poorer sorts shed Rs 5 to Rs 10. A few Select Best tippy sorts maintained last levels. However the balance were lower to last.

Off Grades

Select Best liquoring Fngs1s were lower by Rs 10, Best and Below Best were dearer by Rs 10 to Rs 15 whilst the poorer sorts appreciated by Rs 10. Select Best and Best BMs were lower by Rs 10 to Rs 15 and more at times whilst the Below Best and poorer sorts depreciated by Rs 10 to Rs 15.

All BPs were irregularly lower by Rs 10 to Rs 15. All Low grown Fngs depreciated Rs 10. Select Best BOP1As eased Rs 5, whilst Best and Below Best too were lower by Rs 10 to Rs 20, poorer sorts too shed similar margins and more at times with low demand.

Dust

Select Best Dust1s were firm whilst the others in the Best and Below Best category declined Rs 15 to Rs 20, poorer sorts declined further.

Clean secondaries along with the Below Best types shed Rs 10 to Rs 15 whilst the poorer sorts were firm. All Low Grown Dust / Dust1s eased Rs 10 to Rs 15.
source - www.dailynews.lk