Tea - lower demand for restricted quantity

The first ex-estate sale on January 2 consisting of 0.37 Mkg commenced with prices for most categories declining in value, in comparison to the last sale in December.

However, the prices continued to be buoyant due to the smaller weight on offer, with quality showing a drop in the next few sales a further decline in prices could be expected. Moreover, a market correction was expected after the sharp increase in the price levels for all grades in the past two weeks on account of low volume.

At the January 2 sale the best Western BOPs/BOPFs on offer declined Rs. 30 to Rs. 40 and more, whilst the below best fluctuated in prices with the plainer types too tending lower. The few Nuwara Eliya's on offer, however, gained in value particularly for the BOPFs, whilst Uva's were of a lower market. Low grown CTC PF1s declined Rs. 20 to Rs. 30 and more, whilst the High and Medium grown PF1s were irregular. BP1s declined Rs. 4 to Rs. 6 on average.

The much smaller volume of 2.6 Mkg of Low Growns that were on offer met with wide spread demand, however, at lower levels, presumably, due to the overseas markets still being closed due to the seasonal holidays.

In the Leafy category, select best BOP1 were mainly firm. A few below best invoices advanced in value, whilst prices at the bottom end too were maintained. The best OP1s did not generate adequate buyer support as a result of which prices fell further. Below best too met with a lower market whilst, the poorest were mainly firm. The best OPAs on offer, maintained the last levels.

The below best too were fully firm, but the poorest shed Rs. 5 to Rs. 8. The shotty Pekoes were mostly lower, the below best and poorer sorts too met with restricted demand. In the small leaf category, select best FBOP/FFs shed Rs. 10 to Rs. 15, the below best too met with a lower market, however at the bottom end prices were fully firm, if not dearer. The Tippy varieties at times declined sharply.

Here again, the poorest saw more demand with prices gaining several rupees. There was excellent demand from Russia, whilst less interest was evident from Iran and Turkey. Libya, Jordon, Iraq, Saudi Arabia, Dubai and other Middle Eastern markets too lent fair support.

Keells Tea Report