Zimbabwe: Golden Leaf Earns U.S.$199,3 Million to Date

Source from:  The Herald 06/13/2010

Harare - THE country has so far earned US$199,26 million from the sale of 65,3 million kg of Virginia tobacco since the season began mid February. Of the US$199,26 million realised this season, the bulk of the money amounting to US$112, 25 million was raised through the sale of 35,4 million kg under contract. The balance of US$87,01 million was raised from the sale of 29,9 million kg under the auction system. Of the amount realised under the auction system, US$44,08 million was raised from the sale of 15,1 million kg at Zitac while 14,7 million kg went under the hammer at Tobacco Sales Floor realising US$42,93 million. Tobacco deliveries, which had slowed in recent weeks due to a shortage of wrapping paper, have started picking up following an improvement in the supply situation. According to the latest bulletin released by the Tobacco Industry and Marketing Board, 6,5 million-kg went under the hammer this week as opposed to 3,5 million kg sold last week. This was attributed largely to the availability of tobacco wrapping material, which has significantly improved, as well as prices that also firmed up against those of the previous week. However, the downward trend on the seasonal average prices continued, closing the week at 63,8 million-kg with prices averaging US$3,05 per kg. In comparison to last year's statistics during a similar number of selling days, 47,5 million kg were sold at an average price ofUS$3,01 per kg. TIMB said that although some good grades recorded slight gains as average prices continued to weaken during week as evidenced by a slump in both the weekly and seasonal average. The weekly average dropped to US$2,67 per kg from US$2,87 per kg recorded last week. The seasonal average also declined from US$3,09 per kg to US$3,05 per kg. "As a result of the downward trend on prices during the week, tobacco withdrawals for speculative reasons increased. Torn tickets by growers for price consideration constituted the majority of rejected bales at 2,4 percent," TIMB said. About 55 percent of the total crop is set to be sold under contract with the balance being sold under auction. A total of 77 million kg is expected to go under the hammer this season up from the 58,6 million kg for last year. Enditem