Rains calm tea worries

Wednesday, 20 April 2016 00:00 - - {{hitsCtrl.values.hits}}

Ambiguity experienced by the tea industry in April dissipated somewhat this week with the return of rains and hope of improved crop yields over the next two months, John Keells Tea Brokers said yesterday.

“A week or two of uncertainty continued around the markets with buyers having to adjust to missing auctions for Sinhala/Tamil New Year last week. In addition there have been climatic and production uncertainties. The scorching hot days that were experienced in the past few weeks have come to an end with the onset of the inter-monsoonal showers,” John Keells said in its weekly report as the first day of auctions wrapped up on Tuesday.

“All three tea growing elevations have experienced sunny mornings and afternoon showers - conditions which are conducive for growth. If the current weather conditions persist, we could expect crop intakes to improve to healthy levels in the month of May and into the first half of June,” it added.

Russian, Iranian and Turkish buyers continued to be a strong presence at the auction, observed the report.

The quantity of 0.86 Mkgs of Ex-Estate teas met with a strong demand. The well-made Western High Grown BOPs sold well, the BOPFs on average gained substantially as the sale progressed. The brighter Nuwara Eliya BOPFs with character met with little demand, the BOPs were irregular.

A steady market prevailed for the Uva BOPs and BOPFs. The High and Medium Grown CTC PF1s improved from last levels. Others were firm to easier with a few invoices remaining unsold. BP1s too were at last levels. Low Grown PF1s were mostly firm with a few select best types gaining on special inquiry, it said.

With the absence of an auction last week on account of the Sinhala and Tamil New Year holidays, the small volume of 2 Mkgs of Low Growns that were on offer met with good demand. OP1s advanced Rs. 20 to Rs. 30. Best BOP1s to advanced Rs. 15 to Rs. 20, whilst the balance were firm.

Select Best OPs gained Rs. 10 to Rs. 15. OPAs advanced Rs. 5 to Rs. 10. Select best and Best Pekoe/Pekoe1s were slightly lower to last but the balance on offer were firm. In the Small Leaf segment, BOP/BOP.SPs maintained last levels. FBOP/FBOPF1s advanced Rs. 10 to Rs. 15, however the Tippy varieties were less sort after and met with irregular demand.