ECONOMYNEXT- Sri Lanka tea prices pick up marginally in the second week of July, helped by stronger demand low grown grades, after a weakening prices through the month of June with increased volumes on offer, brokers sad.
Sri Lanka sold 7 million kilograms in total with 1.1 million kilograms of Ex-Estate teas and 2.9 million kilograms of Low Grown (Leafy/Tippy) teas.
In the previous auction held on June 30 and July 01, Sri Lanka sold 6.9 million kilograms of tea.
Sri Lanka recorded a monthly tea sales average of 615.67 rupees/3.3 US dollars in June.
There was fair demand at easing rates for Ex-Estate while Low Grown (Leafy/Tippy) teas met with good demand, brokers said.
In High grown BOP grades, Best Westerns maintained last week’s prices after which price declined following special inquiry, while others declined by 10-20 rupees. Below best teas were irregular in prices.
BOP Nuwara Eliya’s saw hardly any offerings while Uva/Uda Pussellawa’s were barely.
In BOPF grades Best Westerns declined by 10-20 rupees owing to poor quality. Below Bests, neat leaf coloury sorts picked up marginally while teas in the lower end declined 10-20 rupees.
Meanwhile BOPF grade Nuwara Eliya’s were not steady in price while Uda Pussellawa’s dropped by 20 rupees a kilogram.
In Medium grown teas, Sri Lanka recorded a tea sales average of 544.19 rupees for the month of June 2020 as opposed to 430.74 rupees in 2019.
BOPs declined 20-30 rupees while BOPF teas declined by the same amount following quality drops. Well-made OP/OPA’s were firm on last whilst others eased by 10- 20 rupees per kilogram and more at times.
A limited selection of liquoring PEK’s were irregular whereas orthodox leafy PEK/PEK1’s in general gained by 10-20 rupees. Rotovane PEK teas in general gained 10-20 rupees a kilogram.
Limited selection of liquoring FBOP teas eased irregularly. Well made Orthodox Leafy FBOP/FF1’s were firm on last. Others eased by 10-20 rupees and firm and more at times.
Low grown teas recorded a monthly sales average of .655.97 rupees for June 2020 up by 129.45 rupees from 526.52 rupees a year earlier.
A range of better BOP1’s gained 10-20 rupees and more, while the balance too gained.
Meanwhile A few select best OP1’s gained and high prices teas were irregular following quality. High priced OP’s were fully firm to irregularly gaining and the balance was fully firm and gained up to 20 rupees per kilogram.
Select Best OPA’s though irregular at first were firm as the sale progressed. Other categories gained by 10-15 rupees a kilogram.
Select best BOP’s were firm to dearer (gaining). Best sorts together with cleaner below best and teas at the bottom were firm in price while others irregular following poor quality.
Very tippy FBOPF/FBOPF1 teas continued to attract good demand while prices in the best and cleaner below best categories held firm.
Select best and best FF1’s appreciated and cleaner varieties in the below best category together with the cleaner teas at the bottom too were dearer.
In CTC teas, high grown BP1s were firm while PF1s were lower by 20-30 rupees a kilogram.
Mid grown BP1 prices went up particularly n the low-price brackets while PF1s decline up to 20 rupees following quality issues.
Low grown BP1s were reportedly firm. PF1s sold around last week levels although price tended to fluctuate owing to quality.
Global market movements
“In spite of the expected slackening of trade in the first few months of the year, China has managed to maintain their significant shares of exports to most markets,” Ceylon Tea Brokers said in a statement stating the summary of developments in major producing countries.
“Up to end-April, they have shipped 56 percent and 21 percent of their teas to the African and European continents respectively, in line with export shares in recent years.
“The average FOB price of exports through this period is recorded as approximately 5.37 US dollars per kilogram against 4.81 US dollars for the corresponding period last year.”
India has reported a crop figure for the month of March which was 40 percent lower than the figure released in March 2019, impacted heavily by Coronavirus disruptions.
Brokers also said that there are reports of stock increases in the warehouses of KTDA in Mombasa owing to huge crop outputs in Kenya.
“In Sri Lanka, favorable weather conditions since the second half of May are resulting in increased quantities offered at the auctions,” Ceylon Tea Brokers said.
“However, cumulative crop at the end of May reflects a decline of 23 percent against the previous year with all elevations recording crop losses.”