Adverse weather continues to impact tea

Thursday, 19 November 2015 00:00 - - {{hitsCtrl.values.hits}}

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John Keells Plc has urged a close study of the adverse weather patterns in view lower crops being harvested and cost of production remaining high for extended periods.

This observation by the produce broker is contained in its weekly tea market report released yesterday.

Following is the full text:

The Meteorological Department forecasts evening thunder storms will persist till the end of November and well into the month of December as well. It is reported that the Hydro Power Reservoirs and many other irrigation tanks in the dry zones have filled up and have reached spill levels.

In recent weeks, the intensity of the rains have curtailed crop whilst no sooner the sun comes out, the conditions appear very dry, thus curtailing crop. A close study of this phenomenon therefore is needed as with lower crops being harvested, the cost of production remains high for extended periods.

Today’s Ex-Estate quantity of 1.09 Mkgs of tea met with lower demand. Best Western High Grown BOPs declined with the exception of a few invoices that sold well on special bids. BOPFs too eased on average and at times difficult of sale for the plainer teas. The Nuwara Eliya BOPs and BOPFs declined and were largely neglected and declined as the sale progressed.

Overall, an irregularly lower market prevailed for the Uva BOPs and BOPFs with wide price fluctuations following quality.

High and Medium Grown CTC PF1s were irregularly lower with the well-made invoices attracting some useful bids. Others were firm to easier. BP1s too were lower in general. Low Grown PF1s too were easier, whilst the BP1s followed a similar trend. The smaller volume of 2.8 Mkgs of Low Growns that were on offer met with fair demand. OP1 and BOP1s shed on last levels. OP/OPAs and Pekoe/Pekoe1s too were a lower feature however, the BOPs were firm. FBOPF1s too advanced in value. FBOPs and Tippy varieties declined a few rupees on last.

There was fairly good demand from the Russian, Iranian and other Middle Eastern buyers.