56 Million kgs of Tobacco Dold

Source from:  The Herald 09/28/2009

CONTRACT sales ended last week bringing the total of tobacco sold this year to above 56 million kilogrammes after 94 selling days. Contractor's purchases during the final week were slightly above 700 000 kg which saw the seasonal volumes rise to 56,5 million kg at an average price of US$3,00 per kg. A total of 44,6 million kg were sold in 2008 after 94 selling days at an average price of US$3,24/kg. Contract sales accounted for 72 percent of the 2009 crop and the other 28 percent were shared among the three auction floors. The contract system's offered better average prices at US$3,05 per kg compared to auction floors average price of US$2,87 per kg. Clean up sales, which ended on Friday and put a final cap on sales, are likely to increase the seasonal volume close to 57 million kg. Generally the prices were fairly good for the closing week. In comparison with the previous week significant losses were recorded across all grades mainly those that traded very firmly in week 19 ending the week with an average price of US265 c/kg. Majority grades traded at prices weaker than in the previous week. Some groups, notably Leaf and Cutters "C" despite the losses still managed to trade above the seasonal average price. The seasonal average price was US$3,00/kg compared to US$3,24/kg during a similar period last year. The wastage rate for the week decreased to 2,2 percent from around 3 percent in the previous week mainly due to the reduction in bales withdrawn for price considerations that accounted for 1 percent. Mixed and mouldy bales were the major reasons for rejection each constituting 1 percent. The seasonal wastage rate was at 6,04 percent compared to 11,55 percent in a corresponding period in 2008. Defective bales constituted the 4,28 percent with two percent of this being poorly graded tobaccos. Weekly throughput had 51 tonnes above the previous week at 716 tonnes. However despite higher volumes, the value went down due to lower prices. Typical of the final sales the quality of offerings declined and majority grades traded weaker, posting an overall loss of US19 cents per kg to close the week at US265 cents per kg. Enditem