ECONOMYNEXT – Sri Lanka tea prices eased with a noticeable rise in unsold teas, with small leaf teas usually sought by Iran seeing less interest at the second auction in August, though Low Grown leafy tea attracted good demand, brokers said.
Sri Lanka sold 6.95 million kilograms of tea, selling 0.95 million kilograms in Ex-Estate teas (teas sold while in the factory itself to retain quality) while selling 2.7 million kilograms in Low Grown (Leafy/Tippy) teas.
Owing to the ongoing dry spell in all plantation districts, brokers forecasted lower crop in the coming weeks.
Fair activity was seen in markets like Russia, Azerbaijan and Turkey. Turkish market has been very active lately.
However, buyers in Turkey are now faced with higher taxes as the country slapped import tariffs, brokers said.
Lebanon market was reported sluggish due to recent crisis situations and currency snags. Japan markets has slowed down in buying while China market remained unstable.
The August 18 and 19 auction had seen a noticeable hike in unsold teas, brokers said.
Brokers said that Ex-estate teas saw fair demand at irregular levels, while Low Growns saw lower demand in a brief auction held on 11 and 12 August.
Last week, the High Grown auction average was tea sale average of 543.00 rupees.
In BOP grades, Best westerns where quality was maintained made selective gains while others declined by 30-50 rupees a kilogram.
Lower end BOP cleaner teas declined 20 rupees a kilogram, a report by Ceylon Tea Brokers showed.
BOP Nuwara Eliya’s were irregular following poor quality. A few select Uva made gains while Uda Pussellawa prices were not steady.
In BOPF grades, good quality Best Westerns declined by 20-40 rupees a kilogram as some high priced teas declined further, brokers said.
BOPF grade Nuwara Eliya’s were reportedly unstable. Uda Pussellawa prices were down by 10-20 rupees per kilogram while Uva’s were down 30-40 rupees a kilogram.
Last week, the Medium Grown auction average was 537.19 rupees up 7.66 rupees from a week before.
Select best OP/OPA’s were firm on last, whilst others together with the teas in the lower end gained10-20 rupees a kilogram. BOP prices were generally firm while BOPF grades clean leaf coloury sorts weren’t steady, tea brokers said.
Select Best FBOPs prices were down by 20-30 rupees whilst others firm to selectively making gains.
Select best FF1’s prices were marginally firm to making selective gains.
Last week the Low Grown tea sale average was 669.45 rupees down by 4.41 rupees from a week earlier.
Better BOPF teas eased by 20-40 rupees while poorer sorts went down by 10-20 rupees a kilogram.
BOP prices were irregular.
Well-made OP/OPA’s firm whereby others together with the teas at the lower end too were gaining marginally.
Select Best FBOPs were irregular, whilst others gained marginally.
Well made FF1’s declined sharply . Others were firm to marginally dearer.
In CTC teas, high grown BP1s gained 20-30 rupees while PF1s were irregular following poor quality.
Mid grown BP1 prices gained by 20 rupees while PF1 prices were irregular, brokers said.
Low grown BP1s were mostly firm and, PF1s better teas gained selectively after a special inquiries and the pthers declined by 10-20 rupees.
Crop and weather
The Department of Meteorology predicts light showers in the week ahead. Clear weather was reported in the Uva and Udapussellawa regions. According to the Department of Meteorology, fair weather is forecast during the week ahead.
The Western Region reported dull weather with occasional showers during the week.
Low Growns reported bright weather throughout the week. Light showers are predicted in the Sabaragamuwa Region by the Department of Meteorology in the week ahead
Western and Nuwara Eliya regions maintained the crop intake, whilst the Uva, Udapussellawa and Low Grown regions showed a decrease. (Colombo/Aug24/2020)