Sunday, December 23, 2012

GOOD DEMAND - Tea Market Report

This week a total quantity of 7.5mn kgs of tea was up for sale at the auction being the 50th and the last auction for the year. There was good demand but lower in comparison to previous week’s level.

BOPs in general declined Rs10 - 15 per kg from last week’s levels .

Western BOPFs declined by Rs.10 per kg. Teas in the below best category commenced firm with select bright invoices appreciating by Rs.10 per kg as the sale progressed. Nuwara Eliya/Uva/Udapussellawas declined by Rs.15- 20 per kg.

CTC teas met with lower demand with prices declining Rs.10 per kg on average on all elevations.

Low Growns which consisted 3.4mn kgs in the Leafy & Tippy catalogues too declined from last week’s levels. Select best BOP1/OP1s sold firm whist best OP/OPA declined. Select best PEK/PEK1s held firm. Small leaf tippy teas too eased Rs.10 - 15 per kg on average. Shippers to Turkey, CIS and Dubai operating on a fair cross section of teas whilst Iran lent useful support.

Western, Nuwara Eliya, Uva and Udapussellawa regions experienced bright weather with evening showers towards the end of the week. Low Growns, Rathnapura and Deniyaya districts experienced dull weather throughout the week, whilst Kahawatte and Galle districts experienced bright weather.

The crop intake for Western’s, Uva, Udapussellawa and Low Grown regions decreased whilst Nuwara Eliya’s maintained.

Sri Lanka Tea Exports for the month of November 2012 totalled to 27.7 m kgs showing a marginal gain of 0.7m kgs vis-…-vis 27.0m kgs of 2011. Bulk tea has shown a growth YOY. The total revenue of 16.4b realized in November 2012 shows a gain of 2.5b vis-…-vis 13.9b realized in 2011.

News from other producing countries, East Africa is expecting an increase in tea drought that effected productivity at the start of the year. They are anticipating massive foreign exchange earnings due to high prices that result from the Global production.

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