ECONOMYNEXT- Sri Lanka tea prices has eased after a dip in the moment of Russian winter buying which helped buoy prices in recent weeks, brokers said.
Brokers said that there was a marginal price escalation because the Russian winter buying was active in the last few weeks.
However, they said, this week it will come to a halt and the market might see a slight dip correspondingly.
“This won’t be a drastic drop, but overall demand will come down,” brokers said.
High Growns in particular is boosted from Russian buying while the market also saw selective buying from China.
Sri Lanka sold 5.9 million kilograms of tea, selling 0.7 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.
Sri Lanka sold 5.9 million kilograms of tea in the auction held in the previous week.
Tea sale averages
The tea sale averages for the month of Oct 2020 was recorded 643.70 rupees (3.49 US dollars), up from 525.43 rupees (2.90 US dollars) a year ago.
High Growns for the month of October recorded 600.40 rupees as against 477.59 rupees, gaining 122.81 rupees in 2019, industry data released by Ceylon Tea Brokers showed.
Medium Growns recorded a sale average of 568.14 up by 129.82 rupees a year earlier. Low Growns sale average appreciated 116.36 rupees to 678.26 rupees from a year ago.
The total CTC average for the month of October 2020 recorded 540.50 rupees.
Cumulative figure for January / October stood at 625.35 rupees, up from 540.16 rupees in 2019 brokers said. High Growns recorded 571.71 rupees. Medium Growns recorded an average of 548.85 rupees while Low Growns recorded and average of 667.01 rupees.
Last week the Low Grown tea sale average was 668.26 rupees down 23.93 rupees from a week earlier.
In BOPF category Select Best were firm to making selective gains. Below Best and cleaner teas at the bottom were firm while others irregular.
BOPs in general eased, brokers said.
Select Best FBOP’s declined while best were firm on last. Cleaner Below Best and cleaner teas at the bottom were firm. However, bolder varieties declined as others were irregular following quality.
FBOP1’s in general were firm.
Last week, the High Grown auction average was tea sale average of 621.19 rupees.
Best Westerns, select high priced teas gained 20-30 rupees per kilogram, whilst the others were firm and dearer to a lesser extent. In the Below Best category, select brighter invoices gained 20-30 rupees, while the others were firm. Plainer sorts were firm and gained marginally.
BOP Nuwara Eliyas despite showing very limited availability, sold well.
BOP Uva/Uda Pussellawas were firm.
In BOPF category, Best Westerns declined 20-40 rupees a kilogram. Teas in the Below Best category were irregular following quality, while the Plainer sorts were firm.
BOPF Nuwara Eliyas, sold well, however, showed limited availability. Uda Pussellawas were firm and 10-20 rupees lower following quality. Uvas, where quality was maintained, continued to sell around last, while the others eased irregularly.
Last week, the Medium Grown auction average was 567.71 rupees down 6.74 rupees from a week before.
Well-made OP/OPA’s eased 10-20 rupees a kilogram while others too eased. Teas at the lower end were firm
BOPF’s were irregular following poor quality.
Select Best FBOP’s eased 10-20 rupees while others too eased in a similar margin. Select best FF1s came down by 10-20 rupees while others too eased to a lesser extent.
High grown BP1s were irregular while Select high priced PF1 teas eased 20 rupees a kilogram, whilst the others were firm and made marginal gains.
Mid grown BP1s were irregular while PF1s better sorts were firm, whilst the others gained 20 rupees a kilogram.
Low grown Few select invoices of BPIs sold around last week’s levels, while the others declined 10-20 rupees a kilogram. PF1s declined 20 rupees and more following quality.
Crop and weather
Heavy showers are expected in the Western Region during the week ahead according to the Department of Meteorology.
The Department of Meteorology predicts heavy showers in the Sabaragamuwa District and misty conditions in the Ruhuna District during the morning hours in the week ahead.
The Western and Nuwara Eliya regions reported bright mornings and evening showers.
Bright weather with evening showers were experienced in the Uva/Udapussellawa regions. The Low
Grown Region reported clear mornings and evening showers.
The Western Region and the Low Grown Region reported a slight increase in the crop intake. The Nuwara Eliya and Udapussellawa regions maintained, whilst the Uva Region reported a decrease in the crop intake. (Colombo/Nov14/2020)