August tea sees increased prices

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Tea sale averages for the month of August recorded an increase of Rs. 133.08 to Rs.606.86 ($3.97) vis-à-vis Rs. 473.78 ($3.23) in 2016, Ceylon Tea Brokers said in a statement this week.

High growns for the month of August recorded Rs. 595.04 as against Rs.437.06 (+Rs.157.98) in 2016. Medium growns recorded Rs. 533.03 vis-à-vis Rs.415.41 (+Rs.117.62) in 2016. Low growns recorded Rs.627.77 vis-à-vis Rs.498.79 (+Rs.128.98) in 2016.

Cumulative figure for Jan/August stood at Rs.611.22 vis-à-vis Rs.434.82 in 2016. High Growns recorded Rs.585.69 as against Rs.423.75 in 2016. Medium Growns recorded Rs.561.79 vis-à-vis Rs. 394.50 in 2016. Low Growns recorded Rs.632.84 vis-à-vis Rs. 449.01 in 2016.

The total CTC average for the month of August 2017 recorded Rs. 527.28. CTC High growns recorded Rs. 600.39, CTC Medium growns were at Rs. 536.98 whilst CTC Low growns recorded Rs. 506.43.

“Here again these price levels records a fairly substantial gain in US Dollar terms compared to the corresponding period of 2016. Further these levels also show a gain when compared to 2015 levels both in SLR/USD terms,” Forbes and Walker Tea Brokers said in its weekly tea report.

Global oil prices often have an impact on Sri Lanka tea prices with almost 70% of Sri Lanka’s tea exporters being absorbed by these oil rich countries. In this context it would be relevant to note the increase in oil prices by a 4% in July 2017 $46.93 per barrel on month on month basis after two consecutive months of sharp declines. During the latter part on August a further 9% increase to $51.87 per barrel and a further gain to the current approximately $54 per barrel.

Fair demand from shippers to CIS and China, Japan, UK and the continent were selective following quality, they added.