First tea sale for 2018 concludes with 5.8mn/kg on offer

By Forbes and Walker Tea Brokers

The first sale of the year concluded this Wednesday had on offer 5.8 million-kilograms. Low Growns (large leaf teas) witnessed a buoyant market whilst weak demand was encountered by the high and mid grown small leaf teas.

Ex-Estate offerings totaled 0.87 million-kilograms whilst overall quality of teas on offer showed no significant change. There was less demand all round and consequently a weakening in prices particularly at the lower end of the market.

Best Western BOP’s - majority of the invoices remained unsold due to lack of any suitable bids whilst the corresponding BOPF were firm and Rs.10per kilogram easier on last.In the below best category BOP’s declined Rs.10 to Rs.20 per kilogram whilst the plainer sorts were barely steady. Corresponding BOPF declined Rs.20 and 30 per kilogram respectively.

Nuwara Eliya BOP/BOPF witnessed the steepest decline of Rs.50 to Rs.80 and Rs.50 per kilogram respectively although these teas still continue to sell well above the Rs.700 per kg mark.

Uva/Udapussellawa BOP’s were mostly firm whilst corresponding BOPF were irregular following quality. CTC’s - BP1’s on average declined Rs.20 per kilogram with the exception of the Low Grown types which sold around last. PF1’s with the exception of the Mid Grown types which held firm, others declined Rs.30 to Rs.40 per kilogram.

With the conclusion of the holiday period better demand is expected from most western markets during the forthcoming sales.

Low Growns totalling approximately 2.7 million-kilograms in the Leafy/Tippy catalogues came up for sale this week. There was good demand overall.

In the Leafy catalogue OP/OPA’s met with better demand and prices gained Rs.10 to Rs.15 per kilogram whilst PEK/PEK1’s too were dearer to last with a range of bolder PEK’s gaining substantially.

BOP1/OP1’s too were a dearer feature. Here again a selection of better teas gained Rs.10 to Rs.20per kilogram. In the Tippy catalogue FBOP’s were fully firm to dearer whilst better FF1’s maintained. Balance was irregular and lower following quality.

In the Premium catalogue too prices were fully firm to dearer. There was good demand from shippers to CIS, Turkey, Syria, Dubai, Iraq, Kuwait and Saudi Arabia.

Jan-Dec 2017 total auction average highest ever

January to December 2017 auction average totalled Rs.618.14 vis-a-vis Rs.468.61 of January to December 2016 showing a substantial gain of Rs.149.53 thus establishing the highest ever average for a calendar year improving on the previous best realised during the corresponding period of 2016.

It is also noteworthy that High, Medium and Low grown elevations too have recorded the highest ever average for a calendar year. High growns totalling Rs.600.93 has shown a gain of Rs.151.08 vis-a-vis Rs.449.85 of the corresponding period of 2016. Mediums totalling Rs.563.54 have recorded a gain of Rs.143.95 vis-a-vis Rs.419.59 of January to December 2016.

It is relevant that the previous best achieved in respect of High and Medium grown elevations was during the corresponding period of 2016. Meanwhile Low Growns totalling Rs.637.40 have shown a gain of Rs.150.66 vis-a-vis Rs.486.74 of January to December 2016.

In the case of Low growns previous best being Rs.488.06 was realised during January to December 2014. Further, these averages also record a growth in US$ terms compared to the corresponding period of 2016.