Sri Lanka tea prices marginally up in Sept 2018

tea

Oct 04, 2018 (LBO) – Auction average for the month of September 2018 totalled Rs.537.77 compared to Rs.534.02 of August 2018 showing a marginal increase of Rs.03.75 month on month, a new report said.

However in comparison to September 2017 average of Rs.635.40 it shows a substantial decrease of Rs.97.63,” Forbes & Walker Tea Brokers said in their latest report.

When analyzing the respective elevation averages for the month of September 2018; High Growns totalling Rs.572.61 has recorded a decline of Rs.08.83 vis-à-vis 571.44 of August 2018. When compared to September 2017 a decrease of Rs.53.79 is evident YOY.

Mediums averaging Rs.478.68 has recorded a marginal increase of Rs.01.84 vis-à-vis Rs.476.84 of August 2018. When compared to September 2017 average of 565.49 however shows a significant decrease of Rs.86.81.

Meanwhile Low Growns totalling Rs.542.66 have recorded an increase of Rs.06.36 vis-à-vis Rs.536.30 of August 2018. Similarly, when compared to Rs.653.19 of September 2017, shows a significant decrease of Rs.97.63 YOY.

When analysing the January – September 2018 cumulative average of Rs.581.95 a decrease of Rs.31.67 is recorded vis-à-vis Rs.613.62 of January-September 2017.

The full report follows:

This week’s total Auction offerings declined to 5.35M/kgs. There was good demand all round.

Ex-Estate offerings totalled 0.2M/kgs. Quality of teas from the Western District showed fair improvement, whilst teas from the Eastern sector showed no significant change. There was good demand, particularly for the better teas which appreciated fairly significantly in value. Best Western BOP/BOPF gained Rs. 20-30/- per kg and more following special inquiry. In the Below Best category, a selection of improved BOP/BOPF appreciated Rs. 10-20/- per kg and Rs. 20-30/- per kg respectively. Others, together with teas at the lower end were firm and tended dearer. Nuwara Eliyas were disappointing, whilst Udapussellawas were irregular following quality. Uva seasonal teas were mostly unsaleable, whilst coloury BOP’s gained Rs. 10-20/- per kg following special inquiry. Corresponding BOPF was firm and Rs. 10/- per kg dearer. CTC teas were mostly firm to dearer, particularly for the clean leaf teas.

Low Growns totalled 2.6M/kgs in the Leafy/Tippy catalogues. There was good demand this week. In the Leafy catalogue, better BOP1/OP1’s were generally firm to irregularly dearer whilst others were lower following quality. A few select best OP/OPA’s maintained whilst others were generally easier to previous. At the lower end however cleaner types were fully firm to dearer. PEK/PEK1’s were generally firm to dearer with the exception of a few high priced teas which were barely steady. In the Tippy catalogue, FBOP’s were fully firm to selectively dearer whilst FF1’s gained Rs.10-15/- per kg and more for the cleaner below best types. At the lower end too there was better demand and prices gained particularly for the clean leaf sorts. In the Premium catalogue, there was good demand all around and prices were dearer to last with a selection of below best types gaining substantially. There was good demand from shippers to CIS, Turkey, Dubai, Iraq, Libya and Saudi Arabia this week.

NATIONAL TEA SALE AVERAGES – SEPTEMBER 2018

National average stable after declining for 7 consecutive months this year.

Auction average for the month of September 2018 totalled Rs.537.77 vis-à-vis Rs.534.02 of August 2018 showing a marginal increase of Rs.03.75 month on month. However In comparison to September 2017 average of Rs.635.40 it shows a substantial decrease of Rs.97.63.

When analysing the respective elevational averages for the month of September 2018;

High Growns totalling Rs.572.61 has recorded a decline of Rs.08.83 vis-à-vis 571.44 of August 2018. When compared to September 2017 a decrease of Rs.53.79 is evident YOY.

Mediums averaging Rs.478.68 has recorded a marginal increase of Rs.01.84 vis-à-vis Rs.476.84 of August 2018. When compared to September 2017 average of 565.49 however shows a significant decrease of Rs.86.81.

Meanwhile Low Growns totalling Rs.542.66 have recorded an increase of Rs.06.36 vis-à-vis Rs.536.30 of August 2018. Similarly, when compared to Rs.653.19 of September 2017, shows a significant decrease of Rs.97.63 YOY.

When analysing the January – September 2018 cumulative average of Rs.581.95 a decrease of Rs.31.67 is recorded vis-à-vis Rs.613.62 of January-September 2017.

High Growns for the period January-September 2018 of Rs.570.19 has shown a decrease of Rs.18.74 vis-à-vis Rs.588.93 of January-September 2017. Mediums too averaging Rs.521.62 have shown a decrease of Rs.40.51 vis-à-vis Rs.562.13 of January-September 2017. Meanwhile Low Growns totalling Rs.601.02 for January-September 2018 has shown a decline of Rs.31.67 vis-à-vis Rs.613.62 of January-September 2017.

Both the month and cumulative averages continues to show a greater decrease in USD terms compared to the corresponding period of 2017 with Sri Lankan Rupee depreciating sharply particularly in the month of September.