John Keells Tea Market Report:
Rise in world tea consumption to keep prices high
The Auction commenced after a break of one week due to the
traditional Sinhala and Tamil New Year Holidays.
In the first three months of 2011 prices at the Colombo Auction
seemed to be holding up and even increasing over 2010 averages which
recorded an all time high.
For the period, January 1 to end March 2011 the national average of
Rs 393.92 is the highest on record for a first quarter of any given year
exceeding the previous best of Rs 382.90 recorded last year.
World tea prices are expected to remain moderately high in 2011 due
to the rise in world tea consumption and sluggish world tea production.
China and India with their large population and growing income levels
will make a contribution to the rise in the world tea consumption.
These two countries with their increasing populations will contribute
to increase local consumption of tea thereby reducing their exportable
surplus. Indications of output figures for 2011, suggest a global fall,
with Kenya and Sri Lanka not expected to maintain 2010 record levels.
All major producing countries including India have recorded
shortfalls in 2011 to end February which could increase demand in 2011.
The latest amended tea production for Sri Lanka in 2010 as released
by the Tea Board is 331.4 mkgs.
Despite the large volume of 1.4 mkgs of Ex Estate teas on offer and
considering the quality which was somewhat lower, prices were fairly
A few good Western invoices where the product quality was reasonable
and differentiated from the rest, sold in excess of Rs 400 supported by
special inquiry and airmail bids. The bulk of the teas sold between Rs
350 to Rs 370 on average.
Nuwara Eliya's however, continued to maintain its edge over most of
the Westerns with good prices being registered for grades such as PEKOE1
and FBOPs which sold in excess of Rs 500. Uva's followed a similar trend
of the Westerns.
The top end Low Grown CTC's were firm to a little easier, whilst the
balance declined Rs 10 to Rs 15 on average.
High and Medium types too although met with good demand were
The 3.6 mkgs of Low Growns that were on offer this week met with very
It was encouraging to see Libyan buying and also strong Iranian
buying after their New Year break. Russia too was quite active with the
Syrian buyers purchasing quite aggressively.
Other than for the Best OP1s on offer, all others were fully firm, if
Select Best BOPs advanced substantially following quality, other good
BOPs shed Rs 10. Below Best sorts were firm to easier, plainer varieties
were firm to Rs 5 lower. Select Best BOPFs eased Rs 20 to Rs 25, other
good invoices shed Rs 10 to Rs 15. Below Best sorts were firm to
irregular. Plainer varieties were firm to Rs 5 lower. Medium BOP and
BOPF were Rs 10 to Rs 15 easier.
Nuwara Eliya Teas
Brighter BOPs declined substantially following quality, others shed
Rs 10 to Rs 15 and more. BOPFs declined Rs 10 and more at times.
BOPs were firm to Rs 5 easier whilst the BOPFs declined Rs 5 to Rs 10
on average. Udapussellawa BOPs shed Rs 15 to Rs 20 whilst the BOPFs
eased Rs 5 to Rs 10.
Low Grown PF1s declined Rs 15 to Rs 20 and more. BP1s gained Rs 10 to
Rs 15. High and Medium PF1s advanced Rs 10. BP1s shed Rs 5 to Rs 10 on
Good demand. Select Best OP1s were irregularly lower by Rs 5 to Rs
10, the balance declined Rs 10 to Rs 15 following quality. Select Best
along with the Best BOP1s were firm to Rs 5 to Rs 10 dearer, Below Best
and poor sorts were barely steady.
Select Best OPs along with the improved Below Best were firm to Rs 3
to Rs 5 dearer, however others were irregularly lower by Rs 3 to Rs 5.
Select Best and Best OPAs appreciated Rs 5 to Rs 10, the balance were
steady. Select Best Pekoes tended lower by Rs 5 to Rs 10, however the
balance were firm to Rs 3 to Rs 5 dearer.
Select Best Pekoe1s gained Rs 5 to Rs 10, the Best types along with
the Below Best varieties maintained last levels, flaky types gained Rs 5
to Rs 10 and more at times. Select Best and Best BOP and BOP.SPs
advanced Rs 5 to Rs 10, Below Best and poorer sorts were lower by a
Select Best and Best BOP1s advanced Rs 5 to Rs 10. Below Best types
met with irregular demand particularly for the bolder types.
Poorer sorts shed Rs 5 to Rs 10. Select Best and Best FBOPF1s
advanced Rs 5 to Rs 10. Below Best and poor sorts were lower by a
similar margin. Select Best tippy varieties met with good demand and
advanced above last.
Best and Below Best types were irregularly lower to last. Poor sorts
were lower by Rs 10.
Select Best liquoring Fngs1s were dearer by Rs 5 to Rs 10 whilst
Below Best and poorer sorts appreciated by Rs 5 to Rs 10. Select Best
and Best BMs appreciated Rs 5 Rs 10 whilst poorer sorts were dearer by
Rs 10 from last levels with good demand.
All BPs appreciated Rs 10. All Low Grown Fngs were dearer by Rs 10
and more at times. Select Best BOP1As were on firm levels, Best and
Below Best gained Rs 10, poorer sorts were firm to dearer by Rs 10 to Rs
Select Best Dust1s were firm whilst the Best Dust1s declined Rs 20 to
Rs 30, Below Best types shed Rs 5 to Rs 10 whilst the poorer sorts were
irregular. Clean secondaries were firm whilst the balance appreciated Rs
5 to Rs 10. Best Low Grown Dust and Dust1s declined Rs 10 to Rs 15
whilst the balance appreciated by a similar margin.