No May Day, May Day for tea!

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Highest-ever crop harvest in fifth month of the year

Tea production in May totalled 39.04 M/kgs, thereby recording the highest-ever production for the month. “The May crop was the highest-ever production for a single month with the previous highest being 35.1 M/kgs achieved in March 2011,” Forbes and Walker Tea Brokers said.

The May 2014 crop also shows a gain of 5.3 M/kgs vis-à-vis 33.6 M/kgs recorded during May 2013. Forbes and Walker said High, Medium and Low Growns have shown a significant gain in 2014 vis-à-vis 2013. Tea crop for the period of January-May 2014 of 141.6 M/kgs, however, show a decrease of 7.4 M/kgs vis-à-vis 149.1 M/kgs of 2013. Production in respect of all elevations for the period January-May 2013 too shows a decrease vis-à-vis 2013. CTC production for the month of May of 2.18 M/kgs shows a marginal gain vis-à-vis 2.10 M/kgs of 2013. High & Medium Grown elevations have shown a gain in 2014 vis-à-vis 2013, whilst Low Growns show a negative growth in 2014. January-May cumulative production totalled 8.5 M/kgs vis-à-vis 10.2 M/kgs of 2013 showing a decline of 1.76 M/kgs. Here again, all elevations show a decline YOY. Asia Siyaka Commodities said May is traditionally a high cropping month as the usual dry first quarter gives way to rainy weather. “Over the last four years production has been around 33 M/kgs. This year’s figure therefore is more likely to reflect carry over data from previous months,” Asia Siyaka added.

Significant rise in tea prices averages in first half

Tea averages in the first half have recorded “significant increases” when compared to the same period in 2013, according to produce broker John Keells Ltd. It said the overall average for January to June at Rs. 477.55 is an increase of Rs. 54.78. The High Grown Average at Rs. 428.34 is an increase of Rs. 42.64. The Medium Average at Rs. 424.01 is an increase of Rs. 39. The Low Grown Average at Rs. 509.05 is an increase of Rs. 62.50. The month of June 2014, at Rs. 466.20, registers a positive variance of Rs. 59.22 compared to the average of Rs. 406.98 for the corresponding month in 2013. The High Grown average recorded Rs. 410.03 registering a positive variance of Rs. 60.59 over the corresponding month in 2013. The Mid Grown recording Rs. 413.94 was a positive variance of Rs. 44.69 over the corresponding month in 2013 and Low Grown recording Rs. 503.31 registering a positive variance of Rs. 60.40 over the corresponding month in 2013. In the CTC category too significant increases have been recorded for the month of June 2014. The overall Average for CTC Teas for the month of June was Rs. 419.91, which is an increase of Rs. 72.23. The High Grown CTC Average was Rs. 389.97 – an increase of Rs. 63.23. The Medium Grown CTC Average was Rs. 392.69 which is an increase of Rs. 80.59 and the Low Grown CTC Average was Rs. 464.19 which is an increase of Rs. 68.95 when compared to the averages recorded in June 2013. During January to June, CTC Tea Averages too have record significant increases when compared to the same period in 2013. The Overall CTC Average at Rs. 441.41 is an increase of Rs. 54.84. The High Grown CTC Average at Rs. 409.37 is an increase of Rs. 40.26. The Medium CTC Average at Rs. 412.28 is an increase of Rs. 56.77. The Low Grown CTC Average at Rs. 480.54 is an increase of Rs. 58.41.