Gale force winds whack tea plantations; prices to be little firmer at auctions
Monday, 21 July 2014 00:38
-
- {{hitsCtrl.values.hits}}
The recent gale force winds experienced in most Regions of Uva, Sabaragamuwa, Galle and Deniyaya have caused substantial damage to property and plantation crops, according to produce broker John Keells Ltd.
“Harvesting of tea has been severely hampered in most sub districts resulting in low crop intakes,” it said.
The western region too has experienced wet weather and overcast conditions. John Keells said the delayed replanting and other agricultural work have been accelerated in order to take advantage of the ideal weather conditions.
“The major producing origins’ crops for the first half of this year likely to be around 50 Mkgs below on last year’s excess. We would expect prices to be a little firmer than we have seen for a while particularly for the brighter teas in the coming month or two. Sri Lankan prices should improve following quality and the rest of the market ought to follow suit,” John Keells said.
In sale No. 26 concluded in the previous week, the Western High Growns category averaged below rupees four hundred for the first time this year. “This is attributed to the poor quality on offer,” the broker said.
At last week’s auction the 1.26 Mkgs of Ex-Estate teas met with improved demand. John Keells said Western High Grown BOPs were firm on last levels with some invoices appreciating following quality. Below Best and plainer sorts too were mostly dearer.
Western High Grown BOPFs advanced following quality with wider interest for the below best and plainer varieties. Nuwara Eliya BOPs were mostly unsold, whilst the BOPFs were barely steady with a number of invoices remaining unsold.
Uva/Udapussellawa BOPs were irregular following quality. Uva BOPFs maintained last levels, whilst demand for the Udapussellawas improved as the sale progressed. Low Grown CTC BP1s were firm on last levels, whilst the High and Medium types were mostly easier.
Select Best Low Grown PF1s were firm to Rs. 10 dearer at times, whilst the High and Medium Grown types were barely steady with a number of invoices remaining unsold for want of bids, according to John Keells.
The broker said the 3.5 Mkgs of Low Growns that came under the hammer last week met with widespread demand. In the leafy category, although there was strong demand, prices for some grades declined, however the OPAs met with a dearer market. Whilst Pekoes too were fully firm to dearer, the best OP1s declined a few rupees, whilst the below best appreciated in value. In the small leaf category, other than for the select best tippy varieties which declined sharply, all other grades met with a dearer tone.
“There was excellent demand from Iran, Russia and Syria whilst, Iraq, Libya, Turkey, Saudi Arabia and other Middle Eastern markets too lent useful support,” John Keells added.
