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LANKA COMMODITY BROKERS LTD

TEA MARKET REPORT

SALE NO.49 OF 14TH /15TH DECEMBER, 2010

COMMENTS

This week’s sale which was the penultimate auction for the year was conducted amidst strong buying inerest

shown by most importing countries, and one could perhaps encapsulate this sale as being a sellers’market.



Low Grown Leafy descriptions as well as Tippy teas were in receipt of very strong demand from the

traditional Middle Eastern buyers as well as those operating for the CIS and Russia.



Ex Estate teas continued to attract robust demand despite the quality of offerings being not as useful as the

previous sale. BOP’s are now clearly selling at a premium, over their corresponding BOPF mainly due to the

over-production of BOPF. CTC teas too encountered good demand with prices ruling fully firm to dearer.

Buyers for Russia were active whilst interest from the UK and other European countries was maintained.

There was more interest from Japan and Hong Kong.

____________________________________________________________________________________





Quantity: This week’s auction comprised of 11,468 lots with a total quantity of 7,015,127 kgs.

The catalogue-wise breakdown was as follows:-

LOTS QUANTITY (KG)



Low Grown – Leafy 3,490 1,702,128

Tippy / Small Leaf 2,689 1,631,504

Main Sale – High & Medium 1,402 752,229

Off Grades 1,804 1,077,283

Dusts 500 518,595

Supplementary 389 64,512

Ex-Estate 1,186 1,268,876

Total 11,468 7,015,127

===== =========

Quality : Low Growns were maintained. High Growns were irregular.

Demand : There was strong demand.

________________________________________________________________________________________





FROM THE GRAPEVINE! MORE ON AUSTIN M.L. PERERA (Incidentally the first Ceylonese Chairman of

the Colombo Tea Traders’ Association). Mr P. Saravanamuttu, who was the Tea Commissioner then, first

opened the doors for Ceylonese to be trained in tea tasting, hitherto the preserve of a large number of British

expatriates. Errol de Fonseka and Lionel Cooray were the others in his batch.



Austin Perera started training on 1st June 1945 under Mr.O.P. Rust, MD of Darley Butler & Co. Ltd. (Orange

Pekoe has nothing to do with his initials). They also tasted teas at Broking houses under persons such as Robert

Horne of Forbes, Captain Leefe of E. John & Co., F.A. Waldock of Keel & Waldock and Arthur Bellamy of

Somerville’s. Austin was the first Ceylonese to sit in the auction room. Refreshments were usually served

and Austin was excited - waiting to be served. BUT alas, he was ignored by the waiter, despite wearing white

shorts & stockings! He felt humiliated and miserable - his Senior Buyer looked the other way! On returning to

Office the MD asked him about the sale. Austin politely asked him whether one must have an account or pay

in advance to receive refreshments? The answer, ‘No’. The MD spoke firmly to the Senior Buyer. At the next

Auction the waiter again tried to skip serving Austin BUT the Head Buyer immediately instructed that Austin

be served. Wasn’t he happy.

-/Cont’d…(P2)

-2 -





LOW GROWNS

Quotations (Rs./kg)

LEAFY

Best Below Others

Best

BOP1 Select best invoices gained Rs.10-20/-. Balance too 650-740 475-525 350-375

was fully firm. Poorer teas gained Rs.5-10/=

OP1 Teas in the best category were fully firm. Balance 550-650 450-475 325-350

too sold around last levels. Stalky invoices advanced

Rs.10/-.

OP Best on offer were fully firm. Balance appreciated 450-550 380-400 325-350

marginally. Poorer teas were fully firm.



OPA Teas in the best category were fully firm on last 450-530 380-400 325-350

levels. Below best types too followed a similar trend.

Teas at the bottom advance Rs.10/- at time more .



PEK Teas in the best category were generally firm. Balance 500-560 400-420 300-340

trended irregularly. Below best types declined marginally

whilst the bolder verities were fully firm. Teas at the

bottom sold around last levels.





Quotations (Rs./kg)

TIPPY / SMALL LEAF Best Below Others

Best



BOP/BOPS Teas in the best category gained Rs.5/-10/- whilst 440-570 280-375 230-270

below best followed a similar trend.



BOPF Were firm to dearer. 290-550 225-240 270-28

BOPFS Were firm to dearer. 350-500 310-440 260-290





FBOP / FBOP1 Well made teas gained Rs. 5-10/- and at times 475-750 380-415 235-300

more, whilst secondary sorts were fully

firm to dearer





FBOPF1 Well made teas gained Rs.5-10/-, whilst below 475-800 280-390 220-275

best also appreciated on last.



FBOPF Teas on the best category were irregularly lower, 470-1300 250-440 220-270

whilst the below best advanced Rs.10/- 20/-. Teas at

the bottom were firm.



FBOPF SP / EXSP There was improved demand 2500-2410 1500-2500 450-1500

and prices gained Rs.50/- 60/- on average.

-/Cont’d…(P3)

-3-



HIGH GROWNS

BOP Select best Westerns gained Rs.5-10 per kg following special enquiry but those showing a decline in

quality were easier. Below best and Plainer BOP’s were Rs.5-10 easier, Nuwara Eliya’s were mostly

neglected, and where sold were Rs.10-15 easier. Neater Uva/Uda Pussellawa’s were firm but porer

teas declined Rs.5-10.

BOPF Coloury Westerns in the best category were irregularly dearer following quality, whilst others eased

up to Rs.10/-. Plainer teas were firm. Nuwara Eliyas were barely steady. Uda Pussellawa’s with

neater leaf generally sold around last levels whilst others were marginally lower. Uva’s lost Rs.5-15

per kg.

Quotations (Rs./Kg) BOP BOPF

This Week Last Week This Week Last Week

Best Westerns 430-465 440-465 425-470 435-465

Below Best Westerns 410-425 420-435 410-420 405-430

Plainer Westerns 395-405 400-415 385-405 385-400

Nuwara Eliyas 270-325 300-350 315-335 295-325

Uda Pussellawas 405-430 380-435 380-415 370-410

Uva 380-435 360-430 360-430 350-425

MEDIUM GROWN

BOP Select best teas appreciated Rs.10-15 per kg. Others gained to a lesser extent

BOPF Prices were mostly Rs.5-10 dearer for the neat leaf types. Others were barely steady.

Quotations (Rs./Kg) BOP BOPF

This Week Last Week This Week Last Week

350-550 420-510 375-415 385-450

OFF GRADES

Best liquoring FNGS /FNGS1 gained Rs.30/- and at time more, whilst cleaner Low

Grow FNGS/FNGS1 appreciated by 10/-20/-. Secondary FNGS/FNGS1 gained Rs.5-10/-.and

poorer sorts appreciated by Rs. 20/-30/-. Well made BMs gained Rs.20-30/-, whilst below best types

were irregularly dearer and poorer sorts advanced by Rs.20-25/-. Cleaner BOP1As

appreciated by Rs.10/-, whilst below best types gained Rs.20/-30/- and at times more.

DUST Select best liquoring invoices maintained last levels, whilst poorer sorts appreciated by

Rs.5/-10/-. Low Grown DUST/DUST1 were firm. Secondries appreciated by Rs.10/- 20/-.





CTC (UNORTHODOX)

PF1 Coloury teas from the High and Medium plantations gained Rs.5-10, whilst the best Low Growns

appreciated more.

BP1 Best High Growns were fully firm to dearer, whilst Mediums were Rs.10-15 lower. The limited

selection of Low Growns were barely steady.



Quotations (Rs./Kg) PF1 BP1

This Week Last Week This Week Last Week

CTC High 370-410 375-405 350-395 350-390

Medium 320-400 340-410 370-405 325-395

Low Grown 340-525 320-510 400-420 400-435

-/Cont’d…(P4)

-4-

TOP PRICES – (RS/KGS) – SALE OF 14th /15th DECEMBER~ 2010

Western Medium Uva Medium Low Grown

Harangalla BOP 500/- Cecilton BOP 475/- ++Sithaka BOP1 740/-

Kenilworth BOP 470/- Halpewatte Uva BOP SP 490/- ++Nawalakanda Sup BOP1 740/-

*Hatale BOP 445/- Ambagasduwa BOPSP 490/- Hiniduma Sh OP1 650/-

Kenilworth BOP SP 550/- Ambagasduwa BOPF / BOPF SP 435/- *Sithaka OP1 630/-

Craighead BOPF / BOPF SP 470/- Demodara s BOP1 530/- Sihara OP 550/-

Imboolpitiya BOP 1 600/- Sarnia PL. FBOP / FBOP1 520/- Ivy Tea OP 500/-

Imboolpitiya FBOP / FBOP1 620/- *Halpewatte Uva FBOP/FBOP1 490/- *Selna OP 485/-

Craighead FBOPF / FBOPF1 540/- Halpewatte Uva FBOPF / FBOPF1 490/- *Lucky OP 485/-

Cooroondoowatte OP/OPA 395/- Uvatenna FBOPF / FBOPF1 490/- Sihara OPA 530/-

*Telford OP/OPA 370/- Halpewatte Uva FBOPF / FBOPF1 485/- Dediyagala OPA 490/-

Craighead OP1 530/- *Halpewatte Uva FBOPF / FBOPF1 480/- *Magedara OPA 480/-

Cooroondoowatte PEK / PEK1 495/- Shawlands OP/OPA 455/- *Homadola PEKOE 560/-

*Harangala PEK/PEK1 430/- Demodara s OP/OPA 455/- Nawalakanda Sup PEKOE1 640/-

Dickwella OP1 530/- Kuruduwatte PEKOE1 630/-

Western High Adawatte PEK / PEK1 440/- *Andaradeniya Sup PEKOE1 610/-

Brunswick BOP 465/- Sarnnia PL. PEK/PEK1 420/- Adams view BOP 570/-

Laxapana BOP 465/- *Halpewatte uva PEK/PEK1 415/-

Mattakelle BOP 465/- *Hidellana BOP 555/-

Weddamulle BOP SP 470/- ++*NawagamuhenaBOPF 550/-

Brunswick BOPF / BOPF SP 475/- *Geekiyanahena BOPF 540/-

Uva High

Glenloch BOP1 490/- Nayabedde BOP 435/-

*N/ J S P BOPSP 540/-

Inverness FBOP / FBOP1 480/- Horamulla Sp BOPSP 540/-

Ampitiakande BOP SP 440/-

Weddamulle FBOPF / FBOPF1 470/- Nawalakanda Sup BOPF SP 500/-

Nayabedde BOPF / BOPF SP 420/-

*Lippakelle FBOPF/FBOPF1 465/- Oodoowerre BOP1 500/- *N/Sunils FBOP 750/-

Inverness OP/OPA 355/- Aislaby BOP1 500/- *Bogoda Gr FBOP 630/-

Tymawr OP/OPA 355/- Oodoowerre FBOP / FBOP1 480/- *Geekiyanahena FBOP 620/-

Nadootottem OP1 400/- Non pareil FBOPF / FBOPF1 480/- South co op FBOP1 690/-

Tymawr PEK / PEK1 425/- Oodoowerre OP/OPA 380/- Derangala hills FBOP1 670/-

Craig OP1 465/- *Kanthisiri FBOP1 640/-

Craig PEK/PEK1 405/- *Yalta FBOP1 640/-

Nuwara Eliya Glenanore PEK/PEK 405/- *N/Hopewell FBOPF 1300/-

Loversleap BOP 325/- Battawatte PEK/ PEK1 395/- KDU Super FBOPF1 800/-

Liddesdale BOPF 335/- *Poilakanda PEK/PEK1 390/- *Geekiyanahena FBOPF1 750/-

Temple view Sup FBOPF SP 2010

*Andaradeniya Sup FBOPFSP 1400/-

Kirimatideniya FBOPF EX SP 2410/-

Uda Pussellawa OFF GRADE

*Ganganee FBOPFEXSP 2000/-

Highforest BOP 430/- Crighead BOP1A 370/-

*Yalta FBOPFEXSP 1910/-

Gordon BOP SP 315/- New Nivithigala BOP1A 370/-

Liddesdale BOPF / BOPF SP 415/- Avissawella BM 395/-

Gordon BOP1 410/- *Avissawella BM 390/-

Supplementary

Gordon FBOP / FBOP1 470/- Kirkoswald BP 360/-

Waulugala Group FBOP 1300/-

Mooloya FBOPF / FBOPF1 480/- Fordyce FNGS/FNGS1 415/-

Alton FNGS/FNGS1 415/- Wulathiyana Hills FBOP1 1550/-

Delmar OP/OPA 345/-

Adisham FNGS/FNGS1 415/- Nawalakanda Sup FBOPF 1850/-

Mooloya OP1 400/-

Bridwell FNGS/FNGS1 415/- *Woodland Tea FBOPF1 2510/-

Delmar PEK / PEK1 405/-

Yuillefield FNGS/FNGS1 415/- Ivy Teas FBOPF SP 3200/-

Henfold FNGS/FNGS1 415/- New Vithanakande FBOPF EX SP 3950/-

Clydesdale FNGS/FNGS1 415/- *Magedara FBOPF EX SP 3900/-







Dust

Mattakellie DUST1 510/-

*Kehelwala DUST1 450/-

Kalubowitiyana PD 425/-

CTC Teas

HIGH MEDIUM LOW GROWN

PF1 Florence 410/- *Carolina/ Delta 400/- Hingalgoda 525/-

Madulkelle 400/-

BP1 Florence 395/- Delta 405/- Hingalgoda 420/-



BPS Florence 410/- Strathdon 370/-



* Sold by Lanka Commodity Brokers Ltd. ++ All Time Record

-5-



COLOMBO AUCTION - GROSS SALE AVERAGES



Sale No.48 of 08th December, 2010



2010 2009

Weekly Month Year Weekly Year

To-date To-date To-date



Uva High Grown 347.99 348.85 309.03 342.99 300.17

Western High Grown 396.94 396.95 346.89 381.95 326.76

High Grown 383.27 383.49 334.93 374.44 318.55

Uva Medium 357.38 357.78 333.64 346.43 326.65

Western Medium 341.53 344.85 324.50 332.05 307.64

Medium Grown 347.53 349.63 328.14 336.37 314.96

Low Grown 389.19 389.10 392.87 372.38 388.60

Total 381.19 381.37 369.52 366.98 362.02

====== ===== ===== ===== ======

_________________________________________________________________________________



DETAILS OF TEAS AWAITING SALE



Sale of 21st / 22nd Dec., 2010 Sale of 28th / 29th Dec., 2010 2

Lots Qty (Kgs) Lots Qty (Kgs)





Low Grown Leafy 3,536 1,699,481 3,494 1,684,556

Low Grown Tippy 2,716 1,630,806 2,446 1,476,450

High & Medium 1,408 763,677 1,260 651,329

Off Grades 1,782 1,079,038 1,849 1,123,935

Dusts 514 529,100 502 497,565

Supplementary 456 71,032 337 58,099

Ex-Estate 1,137 1,206,000 1,046 1,106,226

Total 11,549 6,979,134 10,934 6,598,160

===== ======== ====== ========





Weekly Private Sale Figures (From 06/12/2010 – 11/12/2010) - 76,143.00 kgs

Cumulative - 2,561,278.51 kgs



-/Cont’d… (P6)

-6-



FUTURE CLOSING CATALOGUES

Sale No. 02 of 11th /12th January, 2010

The Main Sale catalogue is scheduled to close on 17th December, 2010, whilst the Ex- Estate catalogue will

close on 16th December, 2010.

Sale No. 03 of 17th /18th January, 2010

The Main Sale catalogue is scheduled to close on 31st December, 2010, whilst the Ex- Estate catalogue will

close on 30th December, 2010.

_______________________________________________________________________________________

BROKERS’ ORDER OF SALE NO.50

Auction of 21st /22nd December, 2010 – Main Sale



Leafy/Tippy/Supplementary/BOP1A H&m/Off/Dust



Forbes & Walker Tea Brokers (Pvt.) Ltd Lanka Commodity Brokers Ltd

Bartleet Produce Marketing (Pvt) Ltd Ceylon Tea Brokers PLC

Mercantile Produce Brokers (Pvt.) Ltd Eastern Brokers Ltd

Lanka Commodity Brokers Ltd John Keells PLC

Eastern Brokers Ltd Asia Siyaka Commodities (Pvt.) Ltd

John Keells PLC Mercantile Produce Brokers (Pvt.) Ltd

Asia Siyaka Commodities (Pvt.) Ltd Forbes & Walker Tea Brokers (Pvt.) Ltd

Ceylon Tea Brokers Ltd Bartleet Produce Marketing (Pvt.) Ltd





Auction of 22nd December, 2010

Ex-Estate

Lanka Commodity Brokers Ltd

Mercantile Produce Brokers (Pvt.) Ltd

Eastern Brokers Ltd

Forbes & Walker Tea Brokers (Pvt.) Ltd

Asia Siyaka Commodities (Pvt.) Ltd

Bartleet Produce Marketing (Pvt.) Ltd

Ceylon Tea Brokers Ltd

John Keells PLC

_______________________________________________________________________________________

LCBL APPROXIMATE SELLING TIMES – SALE NO.50



Tuesday 21st December, 2010 Wednesday 22nd December, 2010



High & Medium : 8.00 a.m Off Grades : 8.00 a.m.

Low Grown Tippy : 12.15 p.m Ex-Estate : 8.00 a.m.

Low Grown Leafy : 12.15 p.m. Dust : 2.00 p.m.

Supplementary : 3.45 p.m. BOP1A : 2.15 p.m



15th December, 2010

-/ra.



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