May 13, 2011 (LBO) – Sri Lankan tea prices fell at the Colombo auctions this week mostly because of lower quality and larger volumes in some categories and while trouble in the Middle East also had some effect, brokers said. “Until such time normalcy returns to the Middle East, it is unlikely that Low Grown prices will see an upward movement.” “Low Growns met with fair general demand, but mostly at lower rates,” brokers Asia Siyaka Commodities said in a report.
“Stylish OP1 and BOP1 (types) sold at firm to dearer rates, while all others recorded price declines.”
Low growns make up over half the crop with the main markets being in the Middle East and Russia.
Prices of tea from estates of regional plantations companies also fell with larger volumes on offer.
“Ex-estate offerings totalled a record volume of 1.9 million kilos. Overall quality showed no significant change with a greater weight of the offerings comprising of a fair average quality,” Forbes & Walker Tea Brokers said.
“The relatively uninteresting quality coupled with the large weight on offer continued to assert downward pressure on prices,” they said.
“The overall decline in quality coupled with the large weight on offer, in additio