Tea sales average positive in April

Thursday, 5 May 2016 00:00 - - {{hitsCtrl.values.hits}}

The Sri Lankan tea sales average for the month of April 2016 at Rs.429.76 is showing a positive variance of Rs.21.42 when compared to the corresponding period of 2015, according to John Keells Plc.

It said all three elevations recorded positive variances when compared to last season with the highest variance being recorded in the high grown elevation, which was a positive variance of Rs.51.51.

However year to date, January-April, tea sale average is recorded at Rs.412.71 a negative variance of Rs.4.17 when compared to the same period of 2015.

The positive variance of Rs.21.47 in the high grown category is noteworthy, whilst the medium grown has recorded a negative variance of Rs.1.32 and the low grown recorded a negative variance of Rs.13.05, John Keells Plc said.

Meanwhile, commenting on tea auctions, the produce broker said there was a revival in demand in the last two sales.

“It was heartening to note the teas at the bottom end also meeting with improved demand. It would be too early to predict if the prices we are seeing now will stabilise at present levels due to the larger volumes anticipated in the coming weeks, particularly for teas of a lesser quality. What we may see in these sales is more pronounced price differentiation based on product quality. It is therefore prudent that all producers concentrate on producing a true to type tea with a clean and neat leaf appearance,” John Keells said.

It said the quantity of 0.89Mkgs of ex-estate teas at yesterday’s sale met with good demand. The better made Western high grown BOP and BOPFs sold well. The below best and plainer types were a little easier. The Nuwara Eliya BOP and BOPFs were irregularly low. A steady market prevailed for the Uva BOPs and BOPFs. The high and medium grown PF1s gained quite sharply. Low grown PF1s were firm to dearer. BP1s met with fair demand.

The 2.4 Mkgs of low growns that were on offer met with good demand. In the leafy category, most grades advanced Rs.5 to Rs.10, bearing a few that were a little irregular. The small leaf grades met with better demand. BOP/BOP.SPs advanced Rs.5 to Rs.10. FBOPs moved up by Rs.10 to Rs.15. FBOPF1s appreciated Rs.10 to Rs.20, Premium Flowery varieties were firm. Shippers from the C.I.S, Iran, Iraq, Turkey and Saudi Arabia were active.

The produce broker also said scorching hot days experienced in the months of March and April have given way to some cooler conditions with the onset of some inter monsoonal showers.

“All three growing elevations have experienced sunny mornings and afternoon thunder showers, conditions which are conducive for growth. If the current weather conditions persist, we could expect crop intakes to be maintained at healthy levels in the month of May and into the first half of June,” John Keells Plc added.