Sale No: 23
Date: 13th and 14th June, 2017
Tea prices globally are expected to increase this year due to reduced output in India and Kenya. Kenyan tea output was down more than 33 percent in the first quarter of 2017 from the same period last year, whilst Indian production was down 16 percent. Global prices are already up 15 to 20 percent. Prices are expected to remain firm for the rest of 2017, and though improved weather could boost Kenyan production in the second half of the year.
Production in Sri Lanka is likely to be further impacted as the country experienced its worst disaster from torrential rain since 2003. Factory’s that were affected are still recovering from the damages and the current inclement weather will also have a negative impact on the production and quality.
The Sri Lankan National average stood at Rs.627.61 per kg for the month of May 2017. This is a significant improvement, (40%) to the Rs.447.83 which was achieved during the same month in 2016. The sale averages achieved in the fifth month of 2017 showed a negative variance of Rs.20.91 from the previous best of Rs.648.52 recorded in the month of April.
1.1Mkgs of Ex Estate teas on offer met with improved demand. Western High Grown BOP/BOPFs appreciated, the below best and plainer varieties too followed a similar trend. Nuwara Eliya BOPs declined, whilst the BOPFs too were tending lower.
Uva/Uda Pussellawa BOPs were irregular, whilst the BOPFs too followed a similar trend with some of the poor leaf types declining. Low Grown CTC BP1s were firm, whilst the High and Medium types were firm to a little dearer. Low Grown PF1s were mostly firm, whilst the High and Medium types declined following quality.
The 3.4 Mkgs of Low Growns that were on offer met with good demand. In the Leafy category, well-made OP/OPAs were firm, below best and poorer sorts declined sharply. Pekoes met with good demand, whilst the shotty Pekoe1s were lower to last. There was less demand for BOP1s, however the OP1s maintained last levels. In the Small leaf segment, Best BOP/BOP.SPs and BOPF/BOPF.SPs met with fair demand, however the balance declined. Select best FBOPs shed a few rupees and the balance gained following quality. There was good demand for well-made FBOPF1s and the others declined. Tippy varieties maintained last levels. Turkey and Russia lent more support with fair interest from Syria, Iran and Iraq. There was less demand from Libya.