Sri Lanka tea sees better demand at auction

Tea

Jul 14, 2016 (LBO) – Sri Lankan tea prices rose at this week’s Colombo auction with some prices up by 20-30 rupees, Forbes & Walker Tea Brokers said in their latest report.

“Overall quality of teas, both from the Western and Eastern planting districts showed an improvement and consequently recorded a price appreciation of Rs. 20/- per kg and more as the sale progressed,” the report said.

“Western BOP’s where quality was improved gained Rs. 20-30/- per kg and more whilst the others were firm and dearer to a lesser extent.”

The full statement follows:

A total of 6.0M/kgs came under the hammer this week. There was excellent demand.

Low Growns comprised of approximately 2.6M/kgs in the Leafy/ Tippy catalogues. There was fair demand. In the Leafy catalogue BOP1’s were fully firm to dearer whilst select best OP1’s were barely steady. Others were however fully firm to dearer. OP/OPA’s too were fully firm to dearer whilst PEK/PEK1’s maintained last levels. At the lower end however prices were barely steady. In the Tippy catalogue too barring a few select best FBOP’s which were barely steady others were fully firm to dearer. FF1’s too were mostly firm whilst teas at the lower end were firm to dearer. In the Premium catalogue too prices were firm to selectively dearer. There was good demand from shippers to CIS, Turkey, Dubai, Kuwait, Saudi Arabia and Iraq this week.  

Ex-Estate offerings once again, totalled a 0.9M/kgs. Overall quality of teas, both from the Western and Eastern planting districts showed an improvement and consequently recorded a price appreciation of Rs. 20/- per kg and more as the sale progressed. Western BOP’s where quality was improved gained Rs. 20-30/- per kg and more whilst the others were firm and dearer to a lesser extent. Corresponding BOPF’s appreciated up to Rs. 50/- per kg where quality was improved whilst the others were firm and dearer to a lesser extent. In the below best category improved BOPF’s gained Rs. 20-30/- per kg whilst the others were up to Rs. 20/- per kg dearer. Plainer clean leaf teas gained Rs. 20-30/- per kg and more as the sale progressed. Nuwara Eliya BOP’s gained Rs. 5-10/- per kg whilst the corresponding BOPF’s appreciated Rs. 10-20/- per kg and more following special inquiry. Uva/Udapussellawa BOP’s appreciated Rs. 10-20/- per kg for select invoices whilst the Udapussellawa BOPF’s – at the commencement of the sale appreciated selectively up to Rs. 20/- per kg and gained Rs. 20-30/- per kg as the sale progressed in most instances. Uva BOPF’s gained Rs. 10-20/- per kg and here again, by a greater margin towards the end of the sale. CTC teas continued to witness a similar trend and often appreciated Rs. 10-20/- per kg.

Off Grades and Dust’s followed a similar trend and recorded a price gain of Rs. 10-20/- per kg in most instances.

Most markets were fairly active with more aggressive buying noticed from shippers to CIS and Middle East.

This week’s appreciation in prices is indeed encouraging although in no way would offset the increased cost following the sharp decline in volumes particularly in respect of estates in the High and Medium Grown elevations manufacturing small leaf teas.