LANKA COMMODITY BROKERS LTD
SALE NO. 40 - OF 13th / 14th OCTOBER, 2009
One of the key imponderables facing the Tea Industry this year is the inability to account for the
negative crop harvested so far this year. It is true that the year commenced with the fallout of the
global economic meltdown, which perhaps put on hold some agricultural practices, which would
have otherwise gone ahead. The year commenced with drought conditions which severely restricted
crop and pushed up the NSA’s of Tea Factories to unimaginable levels.
The second and third quarters this year was favorable to the Producers. Fertilizer applications have
been administered following rains, but there has still not been a significant impact on crop. October
has started with unusually heavy rainfall in the upcountry in particular, which is once again not
conducive to growth. Many a Planter is trying to figure out a cogent reason for the sharp drop in
crop so far this year, but have not come up with a convincing answer. Is it the effects of Global
warming that has changed the weather patterns? One wonders.
The International Tea Buyers plan out their buying strategies well in advance, as their sourcing at
most times is from several producing countries. As such it is important for Sri Lanka to be able to
provide the world with a supply line in excess of 300 MKGS, which has been achieved during the
past years. On no account must we get ourselves in to a situation where the Tea Production falls
short of the minimum target of 300 MKGS, as it will erode buyer confidence in Colombo being able
to supply their full requirements.
Quantity: This week‟s auction comprised of 10,521 lots with a total quantity of 6,283,320 kgs.
The catalogue-wise breakdown was as follows:-
LOTS QUANTITY (KG)
Low Grown – Leafy 3,689 1,884,351
Tippy / Small Leaf 2,616 1,714,355
Main Sale – High & Medium 1,189 604,797
Off Grades 1,489 888,757
Dusts 358 341,275
Supplementary 445 78,113
Ex-Estate 735 771,672
Total 10,521 6,283,320
Quality: Low Growns were unchanged. Ex-Estate teas were preferable to last.
Demand: Less demand for Low Growns. There was strong and widespread interest for Ex-Estate
LEAFY Best Below Others
BOP1 Teas in the best category declined Rs.10/- and at times 480-520 370-400 250-275
more. Balance tended irregular and was mostly lower.
Teas at the bottom on average lost Rs.10-20/- per kg.
OP1 Select best invoices barely maintained last levels. 460-550 350- 375 230-260
Balance tended irregular. Below best types on average
lost Rs.10-20/-. Poorer teas too declined by a similar
margin whilst the very poor invoices were difficult of sale.
OP Best on offer declined Rs.10-20/-. Balance too was lower 440-490 330-360 230-260
by a similar margin. Teas at the bottom declined Rs.20/- per kg.
OPA A few select best invoices maintained. Balance declined 440-485 340-360 240-270
Rs.10-20/- and at times more. Below best types too followed
a similar trend. Teas at the bottom declined Rs.20/- and more
with some invoices being difficult of sale.
PEK Well made shotty invoices were lower by Rs.10-20/-. 500-700 350-375 275-290
Balance too on average declined Rs.20/- and at times
more. Below best shotty invoices declined further.
Teas at the bottom lost Rs.20/- and more.
TIPPY / SMALL LEAF Best Below Others
BOP/BOPS Teas in the best category continued to ease 470-560 410-415 310-390
and prices fell Rs.5-10/- and at times more, whilst
below best eased Rs.20-30/-.
BOPF Were easier by Rs.20-30/-. 365-475 320-350 290-315
BOPFS Were easier by Rs.15-20/-. 400-485 350-400 290-345
FBOP / FBOP1 Teas in the best category eased Rs.20-25/- 465-650 360-440 350-390
and more, and at the times were unsalable, whilst below
best eased Rs.20-30/-. Teas at the bottom were firm.
FBOPF1 Except a few select best, balance eased Rs.15/-. 485-1080 415-440 370-380
FBOPF Teas in the best category sold around last 575-840 430-480 280-350
levels, whilst below best sorts were irregular.
FBOPF SP / EXSP Best on offer declined by Rs.20-40/- 1800-2900 800-1700 300-800
whilst the others were firm on last levels.
BOP Coloury Westerns in the “best” and “below best” categories gained Rs.10-20/-, and
sometimes more for selected invoices. Plainer teas advanced Rs.15-20/- per kg. Nuwara
Eliyas appreciated Rs.10-25/-, whilst Uva/Uda Pussellawa‟s gained Rs.10-20/-.
BOPF Best Westerns were fully firm whilst coloury below best teas and cleaner leaf plain
liquoring teas gained Rs.5-10/- per kg. Nuwara Eliyas advanced Rs.10-20/-. Uda
Pussellawas gained Rs.15-20/- whilst Uva‟s also followed a similar trend.
Quotations (Rs./Kg) BOP BOPF
This Week Last Week This Week Last Week
Best Westerns 450-500 440-495 450-465 445-480
Below Best Westerns 435-445 420-435 435-445 415-440
Plainer Westerns 420-430 400-415 425-430 400-410
Nuwara Eliyas 370-415 375-390 440-450 420-450
Uda Pussellawas 380-450 375-425 420-450 375-425
Uvas 415-500 360-480 415-460 380-445
BOP Select best teas were fully firm. Others gained up to Rs.10/-.
BOPF Neater teas advanced up to Rs.10/- per kg.
Quotations (Rs./Kg) BOP BOPF
This Week Last Week This Week Last Week
490-540 455-550 400-435 380-435
OFF GRADES Well made cleaner BM‟s eased Rs.10/-. Below best types appreciated by Rs.20-25/-
whilst poorer sorts gained by Rs.20-30/-. Well made cleaner BOP1A‟s maintained last
levels. Below best types and the poorer sorts advanced by Rs.10/-. Liquoring
FNGS/FNGS1‟s advanced by Rs.15/-.
DUST Select best liquoring invoices maintained last levels. Below best invoices declined by
Rs.10/- whilst poorer sorts gained Rs.5-10/- and at times more. Select best PD‟s maintained
last levels. Best Low Growns declined by Rs.10-20/- and at times more whilst poorer sorts
PF1 High Growns gained Rs.10-20/- whilst Mediums which commenced Rs.5/- dearer,
appreciated a further Rs.5-10/- by the close. Select best Low Growns were firm, but others
were barely steady.
BP1 High and Medium descriptions gained Rs.10-25/- whilst Low Growns advanced
Quotations (Rs./Kg) PF1 BP1
This Week Last Week This Week Last Week
CTC High 390-445 375-410 350-455 340-380
Medium 370-440 360-430 320-410 365-380
Low Grown 400-500 390-490 420-450 350-430
-/ Cont‟d… (P4)
TOP PRICES – (RS/KGS) – SALE OF 13th / 14th OCTOBER, 2009
Western High Uva High Low Growns
Bandara Eliya BOPF /SP 445/- Stream Line BOP 560/-
Mattakelle BOP 500/-
Kelliebedde BOP 445/- Lumbini BOP 550/-
Mattakelle/Brunswick BOPF/ BOPFSP 465/-
Gorden/Oodoowerre PEK/PEK1 475/- * Hidellana BOP 540/-
Glenloch PEK/PEK1 495/-
Craig FBOP/FBOP1 480/- *New JSP BOP 540/-
Inverness FBOP/FBOP1 465/-
Craig FBOPF/FF1 495/- Renukanda BOP SP 540/-
Diyaella FBOPF/FF1 455/-
Craig OP1 435/- * Andaradeniya Super BOPSP 530/-
Nadoototem OP1 355/-
Sarnia Plaiderie BOP1 480/- Kirimetiya BOPF 475/-
Bambarakelle OP1 355/-
Batawatte OP/OPA 435/- * Geekiyanahena BOPF SP 485/-
St. Andrews/Batalgalla BOP1 440/-
Ceciliyan/Kelani BOP1 520/-
Diyaella OP/OPA 405/-
New Vithanakande BOP1 520/-
Western Medium Uva Medium
Nilvin View Super BOP1 510/-
Doombagastalawa/Rilagala BOPSP 510/- Telbedde BOP 470/-
*Andaradeniya BOP1 500/-
Kenilworth BOP 540/- Halpewatte Uva BOP SP 500/-
Sithaka OP1 550/-
Vellai Oya BOPF/ BOPFSP 435/- El Teb BOPF/ BOPFSP 460/-
Wewelkandura PEK 700/-
Craighead/Imboopitiya PEK/PEK1 485/- Ambagasdowa PEK/PEK1 475/-
Nawalakanda PEK1 630/-
Imboolpitiya FBOP/FBOP1 500/- Sarnia Plaiderie FBOP/FBOP1 500/-
Sithaka OP 490/-
Imboolpitiya FBOP/FBOP1 495/- Meddakanda FBOPF/FF1 490/-
* Bogoda Group OPA 485/-
* Ancoombra FBOP/FBOP1 455/- Dickwella OP1 490/-
Sihara OPA 485/-
* Orange Field FBOP/FBOP1 455/- Dickwella BOP1 475/-
Morawakkorale FBOP 610/-
Orange Field FBOPF/FF1 510/- Pinnawela BOP1 440/-
* Uruwala FBOP1 650/-
Craighead FBOPF/FF1 510/- * Halpewatte Uva BOP1 435/-
Makandura FBOPF 840/-
* New Dartry OP1 430/- Shawlands OP/OPA 455/-
Galahitiya FF1 1080/-
* Uplands/Sanrose OP1 420/-
Sirimewana FBOPF SP 1250/-
* Hatale OP1 400/- Uda Pussellawa *Ganganee FF EX SP/1 1300/-
Imboolpitiya BOP1 500/- Liddesdale BOP 450/-
Oonoogaloya OP/OPA 395/- Liddesdale BOPF/ BOPFSP 450/-
Nuwara Eliya Ragalla BOPF 450/-
Wewelkandura FBOP 1160/-
Lovers Leap BOP 415/- Liddlesdale PEK/PEK1 440/-
New Falcon Lanka FBOP1 1070/-
Lovers Leap/Mahagastotte BOP 450/-
Bandarahena FBOP1 680/-
Lovers Leap PEK/PEK1 580/-
* New Laksanakda FBOP1 640/-
Mulatiyana Hills FBOPF 1750/-
* Geekiyanahena FBOPF 1430/-
Ehalakanda FBOPF1 3400/-
Mulatiyana Hills FF SP 2010/-
New Vithanakanda FFEX SP/EXSP1 2900/-
HIGH MEDIUM LOW
*Florence PF1 445/- Delta PF1 440/- Kalubowitiyana PF1 500/-
* Carolina PF1 435/- Kalubowitiyana BP1 450/-
Florence BP1 455/- ++ Duckwari PF1 435/-
Carolina BP1 410/-
*Florence PD 435/- Coldstream BP1 410/- Hingalgoda PD 435/-
Rothschild PD 445/-
* Sold by Lanka Commodity Brokers Ltd. ++ All Time Record
-/Cont‟d … (P5)
COLOMBO AUCTION – GROSS SALE AVERAGES
Sale No. 39 of 7th October, 2009
Weekly Month Year Weekly Year
To-date To-date To-date
Uva High Grown 366.07 365.38 287.04 234.85 267.02
Western High Grown 409.74 409.72 304.46 293.35 287.48
High Grown 396.54 396.26 298.89 272.44 280.69
Uva Medium 393.21 392.28 318.89 257.29 291.38
Western Medium 368.42 367.91 296.23 260.07 277.62
Medium Grown 378.17 377.47 305.28 258.86 283.33
Low Grown 414.69 414.65 387.22 334.25 355.60
Total 406.99 406.71 355.37 308.19 326.50
===== ===== ===== ===== =====
DETAILS OF TEAS AWAITING SALE
Sale of 20th / 21st Oct.’09 Sale of 27th / 28th Oct.’09
Lots Qty (Kgs) Lots Qty (Kgs)
Low Grown Leafy 3,621 1,853,033 3,473 1,728,923
Low Grown Tippy 2,606 1,709,319 2,470 1,574,996
High & Medium 1,323 678,711 1,164 599,885
Off Grades 1,541 907,918 1,368 820,308
Dusts 369 362,530 309 305,765
Supplementary 446 78,282 516 90,592
Ex-Estate 762 791,544 706 738,542
Total 10,668 6,381,337 10,006 5,859,011
===== ========= ===== ========
-/Cont‟d … (P6)
FUTURE CLOSING CATALOGUES
Sale No. 43 of 03rd / 04th November, 2009
The Main Sale catalogue is scheduled to close on 16th October, 2009, whilst the Ex- Estate catalogue will
close on 15th October, 2009.
Sale No. 44 of 10th / 11th November, 2009
The Main Sale catalogue is scheduled to close on 23rd October, 2009, whilst the Ex- Estate catalogue will
close on 22nd October, 2009.
BROKERS ORDER OF SALE
Auction of 20th October, 2009 Auction of 21st October, 2009
Main Sale Ex-Estate Sale
John Keells Ltd Asia Siyaka Commodities (Pvt) Ltd
Mercantile Produce Brokers (Pvt) Ltd Ceylon Tea Brokers (Pvt) Ltd
Somerville & Co. Ltd John Keells Ltd
Forbes & Walker Tea Brokers (Pvt) Ltd Mercantile Produce Brokers (Pvt) Ltd
Ceylon Tea Brokers (Pvt) Ltd Lanka Commodity Brokers Ltd
Eastern Brokers Ltd Eastern Brokers Ltd
Lanka Commodity Brokers Ltd Somerville & Co. Ltd
Bartleet Produce Marketing (Pvt) Ltd Bartleet Produce Marketing (Pvt) Ltd
Asia Siyaka Commodities (Pvt) Ltd Forbes & Walker Tea Brokers (Pvt) Ltd
LCBL APPROXIMATE SELLING TIMES – SALE NO.41
Tuesday 20th October, 2009 Wednesday 21st October, 2009
Low Grown Leafy : 4.00 p.m. Off Grades : 10.15 a.m.
Low Grown Tippy : 2.30 p.m. BOP1A : 2.00 p.m.
High & Medium : 11.30 a.m. Dusts : 12.15 p.m.
Supplementary : 3.30 p.m. Ex-Estate : 9.30 a.m.
MOMBASA - Sale 40 of the 13th October, 2009
Good but irregular demand for the 77,529 packages (4.97 mkgs) on offer with many teas remaining
Brighter BP1s met very strong competition and gained USC 34-66 with Mediums irregular ranging
between USC 3-10 dearer for improved invoices but others declined by up to USC 10. Lower Mediums
saw better absorption at firm to USC11.
Brighter PF1s were a weak feature and lost USC7-16 while Mediums were discounted by USC8-25. Lower
Mediums were irregular varying between USC5 dearer for a few improved teas to easier by up to USC20.
Plainer types ranged between USC9 easier to dearer by up to USC14 for a few improved lines.
Brighter PDUSTs were generally USC4 to 19 dearer but a few lines eased by upto USC2 with mediums a
weak feature and were discounted by USC16 to 26 although a few coloury lines gained up to USC 20.
In the Secondary Catalogues BPs and PFs were irregularly firm to easier. Clean well sorted coloury
Fannings and Dusts lost value. Other Fannings were irregularly dearer with similar Dust easier. BMFs
were well absorbed.
Kazakhstan(CIS) was dominant especially on best BP1s while Pakistan Packers, Yemen and other Middle
Eastern countries showed more interest with Egyptian Packers quieter at the start but was more active
towards the close. The UK showed strong support with Sudan active but at lower levels. Afghanistan was
quieter while Bazaar, Russia and Egyptian Government Sector were subdued. Somalia showed more
interest at the lower end of the market.
CTC Quotation and Highest Prices (USC)
BP1 PF1 PD
Best 498-506 334-358 340-378
Good 482-501 334-347 334-347
Good Medium 430-488 332-337 290-330
Medium 325-374 270-286 232-250
Lower Medium 184-301 192-255 210-242
Plainer 143-192 160-228 195-240
Coca-Cola Tests Tea Brewer to Help Offer More Variety (Update1)
By Mark Clothier
Oct. 5 (Bloomberg) -- Coca-Cola Co., the world’s largest soft-drink maker, is testing a machine for
restaurants that can brew more than 18 different kinds of iced tea in portions to boost sales volume by
offering more variety.
The device, called the Flex Fresh, makes tea from Coca- Cola’s Gold Peak black or green tea leaves, Ray
Crockett, a company spokesman, said in an e-mail. Instead of brewing one batch and throwing out the
remainder, users can make tea by the glass, pitcher or gallon, adding sweeteners and flavors.
“You’ve had a very primitive sort of brewing process and a lot of waste,” Chris Lowe, head of Coca-Cola
North America’s food service unit, said in an interview Sept. 29 in Atlanta. “With Flex Fresh, it’s on
Most Coca-Cola customers carry one type of iced tea and offer it sweetened or unsweetened, Crockett
said. Restaurants throw out an estimated 20 percent of the tea they brew, he said.
The Flex Fresh is being used at 40 restaurants. Coca-Cola won’t comment on which restaurants are
testing the device or how much they’ll pay to have one, Crockett said. Testing started in July.
The amount of carbonated soft drinks sold has been declining in the U.S. and some overseas markets,
said Jack Russo, an analyst with Edward Jones & Co. in St. Louis. Noncarbonated drinks, including bottled
water and tea, have been growth areas for Coca-Cola and PepsiCo Inc., he said.
Soft-drink consumption in the U.S. fell last year to 47.5 gallons per person from 49.4 gallons, according to
Beverage Digest, an industry publication. Tea consumption rose to 7.3 gallons from 7.1 gallons.
PepsiCo has 39 percent of the ready-to-drink tea market in the U.S., excluding Wal-Mart Stores Inc.,
Beverage Digest data show. That compares with 9.6 percent for Coca-Cola’s teas. Most of PepsiCo’s
market share comes from Unilever NV’s Lipton, with which PepsiCo has a licensing agreement.
“Clearly Coca-Cola trails in the tea category versus PepsiCo, so maybe that device might help close the
gap,” Russo said in a telephone interview.
Coca-Cola, based in Atlanta, lost 7 cents to $53.80 at 4:15 p.m. in New York Stock Exchange composite
trading. Purchase, New York-based PepsiCo fell 5 cents to $60.85. Coca- Cola’s shares have risen 19
percent this year, compared with an 11 percent gain for PepsiCo.
October 14, 2009