Better demand for Sri Lanka low growns, Jan-July tea production down

Sep 01, 2016 (LBO) – Sri Lanka’s tea prices in overall auction offerings were marginally lower with better demand for low grown and mid to high grown prices easier, Forbes & Walker Tea Brokers said in their latest report. “Low Grown varieties together with the leafy teas from the high and medium grown elevation continued to meet with good demand,” the report said. “BOP’s from the High and Medium Grown elevation in particular too met with fair demand whilst the BOPF’s witnessed an irregular trend.” However, Tea production for the month of July 2016 totaled 21.3M/kgs showing a decrease of 4.99M/kgs against 26.3M/kgs in July 2015. All elevations show a decrease YOY with low growns recording the highest decline, it said. January – July cumulative production of 175.3M/kgs too shows a decrease of 23.9M/kgs against 199.3M/kgs of January – July 2015. The full statement follows Sale No. 34 concluded this week with a total quantity of 5.0M/kgs on offer. Low Grown varieties together with the Leafy teas from the High and Medium Grown elevation continued to meet with good demand. BOP’s from the High and Medium Grown elevation in particular too met with fair demand whilst the BOPF’s witnessed an irregular trend. Ex-Estate offerings maintained at 0.8M/kgs. Overall quality of teas from the Western and Nuwara Eliya Planting Districts maintained whilst Udapussellawa’s showed a marginal decline. A small selection of Uva’s continued to possess seasonal quality whilst the remainder maintained. Best Western BOP’s where quality was maintained gained Rs. 10-20/- per kg on average whilst the corresponding BOPF’s declined Rs. 20-30/- per kg. Below best and plainer BOP’s were firm to irregularly dearer, the corresponding BOPF’s declined Rs. 10-20/- per kg and more as the sale progressed. Better Nuwara Eliya BOP/BOPF's were fully firm to dearer whilst the others were irregular and lower with the BOP's in particular being difficult of sale. Udapussellawa BOP/BOPF’s too, declined Rs. 10-20/- per kg. Uva seasonal teas continued to be irregular following quality whilst the others were barely steady. CTC BP1’s were firm to marginally dearer. A selection of better PF1’s appreciated following special inquiry whilst the others were fully firm. Shippers to CIS operated on a fair cross section of teas whilst most other markets were selective. Low Growns totalled 2.5M/kgs in the Leafy/ Tippy catalogues. There was good demand. In the Leafy catalogue OP1/BOP1’s were fully firm to dearer with improved/ clean below best types gaining Rs.10-15/- per kg and more at times. OP/OPA’s too gained Rs.5-10/- per kg and more particularly for the better made sorts. Well made PEK/PEK1’s together with a selection of bold PEK’s too gained Rs.10-15/- per kg and more whilst the balance were irregular. In the Tippy catalogue select best FBOP’s were barely steady whilst the others and the FF1’s were fully firm to dearer. At the lower end too, the cleaner varieties met with good demand and gained on last. In the Premium catalogue too prices were mostly firm with a selection of small leaf Tippy invoices gaining on last. At this week’s sale shippers to CIS, Dubai, Turkey, Kuwait, Saudi Arabia and Iraq were active. Sri Lanka Tea Production – July 2016 January – July 2016 Production down – 23.9M/kgs Tea Production for the month of July 2016 totalled 21.3M/kgs showing a decrease of 4.99M/kgs vis-à-vis 26.3M/kgs of July 2015. All elevations show a decrease YOY with Low Growns recording the highest decline. January – July cumulative production of 175.3M/kgs too show a decrease of 23.9M/kgs vis-à-vis 199.3M/kgs of January – July 2015. Here again all elevations show a decrease YOY with Low/ High Growns showing a 12.7M/kgs and 6.5M/kgs deficit respectively vis-à-vis January – July 2015. CTC production for the month of July 2016 of 1.3M/kgs too show a decrease of 0.13M/kgs vis-à-vis 1.5M/kgs of July 2015. When analyzing the production figures on an elevational basis all categories show a decrease YOY. Cumulative CTC production for the period January – July 2016 of 11.3M/kgs however has remained static vis-à-vis January – July 2015. Low Grown production for the period has shown a growth YOY. High Growns have shown a marginal decrease whilst Medium Growns recorded a fairly substantial decrease YOY.