Sri Lanka tea sees better demand for low growns

Mar 24, 2016 (LBO) – Sri Lanka’s tea prices in overall auction offerings were marginally lower with better demand for low grown and mid to high grown prices easier, Forbes & Walker Tea Brokers said in their latest report.

“Low grown continued to witness better demand in general and consequently, a dearer trend in prices while high and medium grown BOP/BOPF’s witnessed an easier trend particularly following quality,” the report said.

“Prices at the bottom end of the market were mostly firm.”

The full statement follows:

Overall Auction offerings were marginally lower to last and totalled a 6.2 M/kgs. Low Growns continued to witness better demand in general and consequently, a dearer trend in prices. High and Medium Grown BOP/BOPF’s witnessed an easier trend particularly following quality. Here again, prices at the bottom end of the market were mostly firm.

Ex-Estate catalogue had on offer a quantity of 1.1M/kgs vis-à-vis the 1.0M/kgs the previous week. There was fair demand at irregular rates following quality whilst the feature of the sale was a strong demand at the bottom end of the market.

Best Western BOP’s – few select invoices appreciated following airmail inquiry whilst the others declined Rs. 20/- per kg and more for last week’s high priced teas. Corresponding BOPF’s in the coloury category were firm whilst the lighter liquoring sorts declined Rs. 10-20/- per kg. In the below best category BOP’s were irregular whilst the corresponding BOPF’s declined Rs. 10-20/- per kg.

Plainer BOP’s too were irregular and tended marginally easier whilst the corresponding BOPF’s were mostly firm on last. Nuwara Eliya’s continued to attract reasonable demand although priced tend to fluctuate following quality. Uva BOP’s declined Rs. 10-20/- per kg whilst the corresponding BOPF’s were firm. Udapussellawa BOP/BOPF’s declined Rs. 10-20/- per kg. High and Medium Grown CTC BP1’s declined Rs. 5-10/- per kg whilst the corresponding PF1’s were mostly firm.

However, Low Grown BP1’s were irregular. The better PF1’s declined Rs. 10-20/- per kg whilst prices at the bottom end recorded a Rs. 5-10/- per kg gain thus narrowing the gap between the better teas and the poorer sorts. Liquoring leafy teas met with less demand and prices ranged between Rs. 450-600/- per kg.

Most markets were less active except shippers to CIS and Middle East competing for teas at the lower end.

Low Grown comprised of approximately 3M/kgs in the Leafy/ Tippy catalogues.

 There was fair demand.

In the Leafy catalogue OP1/BOP1’s were fully firm to dearer with a selection of improved below best types gaining Rs.10-15/- per kg and more at times. Better OP/OPA’s too were fully firm to irregularly dearer whilst others gained Rs.10-15/- per kg and more. Select best PEK/PEK1’s were fully firm. Others particularly the bolder types gained Rs.10-15/- per kg.

In the Tippy catalogue select best FBOP/FF1’s were firm with the cleaner secondaries too maintaining last levels. In the Premium catalogue too prices were fully firm to dearer. There was good demand from shippers to Iraq, Dubai, Turkey, CIS, Kuwait and Saudi Arabia.