Sri Lanka tea sees good demand in November

Dec 22, 2016 (LBO) – Tea production for the month of November totaled 27.3M/kgs, a gain of 2M/kgs against 25.29M/kgs of November 2015, Forbes & Walker Tea Brokers said in a report.

“There was good demand all around,” the report said.

‘Ex-Estate offerings totalled a 0.9M/kgs vis-à-vis 0.7M/kgs the previous week. Overall quality of Western’s were irregular whilst Nuwara Eliya’s together with Uva/Udapussellawa’s showed no change.”

When analyzing the respective elevations, mediums and low growns have shown a growth YOY whilst high growns show a marginal decrease for the month.

However, the January-November 2016 cumulative tea production totalled 264.7M/kgs against 305.5M/kgs of January-November 2015 showing a decrease of 40.80M/kgs.

On a cumulative basis however all elevations have recorded a decrease YOY.

The full report follows

The 50th and final sale of the year concluded today had on offer a total of 7.1M/kgs. There was good demand all around.

Ex-Estate offerings totalled a 0.9M/kgs vis-à-vis 0.7M/kgs the previous week. Overall quality of Western’s were irregular whilst Nuwara Eliya’s together with Uva/Udapussellawa’s showed no change. Notwithstanding the increased volumes on offer, it was indeed encouraging to witness improved wide spread demand resulting in Best Western BOP’s gaining Rs. 20/- per kg and more following special inquiry. Corresponding BOPF’s – select high priced teas of last week were firm whilst the others gained Rs. 20/- per kg. In the below best category brighter BOP’s gained sharply whilst the others gained Rs. 10-20/- per kg. Corresponding BOPF’s were Rs. 10-20/- per kg dearer. Plainer BOP’s gained Rs. 10-30/- per kg whilst the corresponding BOPF’s gained Rs. 10-20/- per kg. Nuwara Eliya BOP’s were substantially dearer following special inquiry whilst the BOPF’s sold around last week’s levels. Uva/Udapussellawa BOP’s gained Rs. 20-40/- per kg whilst the corresponding BOPF’s gained Rs. 10-20/- per kg. CTC teas witnessed a firm to dearer trend with select PF1’s gaining up to Rs. 20/- per kg. There was renewed interest for liquoring leafy teas which were readily observed at substantially dearer rates.

There was improved activity from most traditional markets possibly on account of the absence of a sale next week.

Low Growns comprised of approximately 3.4M/kgs, a significantly larger volume compared to the preceding sale.In the Leafy catalogue, better BOP1/OP1’s declined whilst a range of clean/Improved below best were fully firm. Better OP/OPA’s too were mostly irregular and lower. Teas at the lower end however met with fair demand and were firm on last. Select best PEK1/PEK’s too were irregular and lower. Others particularly the bolder PEK’s were fully firm to dearer. In the Tippy catalogue better FBOP/FF1’s were lower. Cleaner secondries were, however fully firm to dearer. In the Premium catalogue, a selection of better made teas maintained. Others were irregular and lower following quality. There was good demand from CIS, Turkey, Saudi Arabia, Dubai, Kuwait and Iraq this week.

Sri Lanka Tea Production – November 2016

November 2016 Production – Up 2M/kgs YOY

January-November 2016 Cumulative Production – Down 40.8M/kgsYOY

Tea production for the month of November totalled 27.3M/kgs showing a gain of 2M/kgs vis-à-vis 25.29M/kgs of November 2015. When analyzing the respective elevations ,Mediums & Low Growns have shown a growth YOY whilst High Growns show a marginal decrease for the month.

January-November 2016 cumulative tea production totalled 264.7M/kgs vis-à-vis 305.5M/kgs of January-November 2015 showing a decrease of 40.80M/kgs .On a cumulative basis however all elevations have recorded a decrease YOY.

CTC production for the month of November of 1.6M/kgs too show a marginal gain of 0.9M/kgs vis-à-vis 1.5M/kgs of November 2015.All elevations show a growth YOY. January- November 2016 CTC production totalled 16.6M/kgs vis-à-vis 18.1M/kgs January- November 2015 showing a decrease of 1.4M/kgs. On a cumulative basis High & Mid Growns show decrease YOY whist Low Growns show a marginal gain.

Next Auction will be on Tuesday 3rd and Wednesday 4th January 2017