Low Leaf

Asia Siyaka Commodity Brokers said that buyers at the Colombo Tea Auction are concerned by the quality of future low grown teas on offer, driven by the surge in production associated with Sri Lankas famous long holidays. "Many traders seem to have taken the position that they would need to stock up on the superior products available now, in order to maintain their standards in the months ahead." The supply of low grow teas will tip the scales by one million kilos after next weeks auction when the rush crop reaches the market. Auction schedules for the news two weeks show that the low grown tea supply will move up from 2.27 million kilos next week to 3.39 million kilo of tea the week after. The short-term demand rush, pushed up low grown tea prices above the positive gains witnessed in the previous auction. Last weeks auction averages hit record levels with Low Growns achieving Rs.176.65 ($1.81) and the national total Rs.170.35 ($1.75). The fresh average price for low grown is also marginally ahead of Rs.
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176.33 achieved in July last year, but in dollar terms is below the US$ 1.
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82 due to the weakening of the rupee since then. The gains will however be wiped off when the poor quality teas pour in the coming weeks, tea brokers said. The poor quality of the rush crop expected at the low grown tea auctions shortly after a long holiday season is pepping up demand for the current stock.