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Monday, February 7, 2011

John Keells Tea Market Report

Weather affects tea production

Western Teas

Select Best BOPs were barely steady, other good invoices declined Rs 10, Below Best and plainer varieties were marginally easier.

Select Best BOPFs declined Rs 15 to Rs 20, other good invoices were Rs 5 to Rs 10 lower, Below Best and plainer sorts eased Rs 5 to Rs 10 on average.

Medium BOPs declined Rs 5 to Rs 10. BOPFs eased Rs 5.

Nuwara Eliya Teas

BOPs were irregularly lower, whilst the BOPFs were firm to easier.

Uva Teas

A few Select Best BOPs advanced Rs 5 to Rs 10 following quality, others were irregularly lower.

BOPFs declined Rs 5 to Rs 10 on average. Uda Pussellawa BOPs were firm to easier. BOPFs declined Rs 10 to Rs 15.

CTC Teas

Select Best Low Grown CTC PF1 advanced Rs 10 to Rs 15, others shed by a similar margin.

BP1s were firm to Rs 10 easier. High and Medium PF1s shed Rs 10 to Rs 15. BP1s declined Rs 10.

Low Growns

Fair demand. Select Best OP1s were lower by Rs 10 to Rs 15, however the balance were firm to Rs 5 to Rs 10 dearer. Select Best BOP1s shed Rs 20 to Rs 30, Best types too tended lower by Rs 10 to Rs 15, Below Best and poor types maintained last levels. Select Best OP/OPAs eased Rs 10 to Rs 20, however the Best and Below Best types were irregularly dearer by Rs 5 to Rs 10, poor types were firm. Select Best Pekoes appreciated Rs 20 to Rs 40, Best and Below Best types were firm to Rs 3 to Rs 5 dearer, poor flaky types too were irregularly dearer by a similar margin. All Pekoe1s maintained last levels. Select Best and Best BOP/BOP.SPs declined Rs 10 to Rs 20 per kg, Below Best and poorer sorts were lower by a similar margin. Select Best and Best FBOP/FBOP1s were lower by Rs 10 to Rs 20 per kg, Below Best and poorer sorts too declined Rs 10 to Rs 15. Select Best and Best tippy varieties shed Rs 30 to Rs 40 and at times more, Below Best and poorer sorts too were lower to last.

Off Grades

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

All Low Grown Fngs appreciated Rs 10. All BPs were dearer by Rs 10 and more at times. Select Best BOP1As were firm to dearer by Rs 15 to Rs 20, Best BOP1As too were dearer by similar levels, Below Best BOP1A were firm on last levels, poorer sorts however declined Rs 5 on average.

Dust

Select Best Dust1s were firm whilst the others in the Best and Below Best category declined Rs 10 to Rs 15 poorer sorts declined further. Clean secondaries shed Rs 10 whilst the Below Best types were firm, poorer sorts declined Rs 5 to Rs 10. Best Low Grown Dust/Dust1s were firm whilst the balance appreciated Rs 10 to Rs 15.

Barring a brief period of sunny weather during the last fortnight of January, weather conditions have been mainly wet interspersed with cold nights. Crops have eased significantly and are expected to drop further as night temperatures continue to fall. Reports from plantations in the Western and Eastern sector indicate crop levels dropping in January by almost 50 percent of the budgeted crop. With little signs of a change in the weather, we do not expect to see a significant improvement in production in February.

More over with so much rain around, we are yet to see any signs of bright seasonal Dimbulla teas from the Western Sector.

This years Dimbula season will inevitably get pushed back on account of the inclement weather.

Sri Lanka’s Tea sale averages released by the Tea Board for January show an overall 1.17 percent increase over the corresponding period of 2010. Low Grown at 411.08 shows a 2.25 percent increase; whereas High Grown at 376.53 have recorded a negative variance of 0.56 percent.

Today’s Ex Estate teas comprising 1.15 mkgs. of teas met with fair demand at lower levels. BOP’s on average were Rs 5 Rs 10 easier whilst BOPF declined Rs 10 to Rs 15 on average which could be attributed to the overall drop in product quality on offer on account of post Thai Pongal production. The Low Grown CTC PF1s mostly maintained whilst High and Medium types declined as much as Rs 15 to Rs 20. There was fair support from the tea bag sector, whilst Russia was selective. UK, Japan and Continental buyers too were selective following quality. The 3.5 mkg of Low Growns that were on offer this week, met with excellent demand. In the Leafy category, the top end of the BOP1s continued to maintain the Rs 700 level, whilst the best OP1s on offer sold between Rs 620 to Rs 640. The OP/OPAs too continued its bullish trend, whilst Pekoes too met with a strong market.

However, in the Small leaf category, prices for most grades declined as the sale progressed. However, prices are still quite reasonable. As expected, the one day auction that closed last week had a volume of 4.6 mkg on offer. Due to the current inclement weather, crop intakes in most planting districts will once again decline. There was excellent demand from Russia, whilst Dubai, Iran, Iraq, Syria, Saudi Arabia and other Middle Eastern countries also lent useful support.

source - www.dailynews.lk