Selective buying as auction sentiment stays weak

The overall offerings at the Colombo Tea Auction were maintained around 6.7 million kilogrammes (M/Kgs). 

The Large Leaf/Low Grown type teas continued to witness a somewhat firm market, whilst the High and Mid Grown liquoring Small Leaf teas continued to encounter a bearish market sentiment. 

The Ex-Estate offerings totalled 0.9 M/Kgs, marginally lower from 1.0 M/Kgs on offer the previous week. Marginal improvement in quality was seen though market sentiment still continued weak.  

A selection of the Better Westerns was firm and dearer, whilst the others were barely maintained. Marginal improvement was seen in the price of teas at the lower end of the market, particularly for the cleaner sorts. The demand for the Nuwara Eliyas continued to be sluggish, with only a few select invoices realising a reasonable price in keeping with the overall market. The Uva/Uda Pussellawa BOP/BOPFs were barely maintained with a few select clean leaf teas gaining marginally in value.   

The High and Mid Grown CTC teas showed no significant change in its overall price structure, whilst the Low Grown types gained by Rs.20-40 per kilogramme for the better teas and that too, particularly for the PF1 grade. 

Less demand from the shippers to the UK and the continent was seen. Fair activity from the shippers to Japan, the CIS and Middle Eastern sector was seen, whilst there was selective buying from South Africa and perhaps China.  

The current crop intake in most plantations record a decline, which is likely to show up in the auction availability, perhaps in the next two to three weeks. 

The Low Growns comprised of 2.5 M/Kgs. All categories met with fair demand.

In the Leafy and Semi-Leafy catalogues, the Select Best and Best BOP1s maintained at firm levels, whilst the balance was irregular, following quality. The OP1s were generally easier. The well-made OPs and Below Best varieties maintained, whilst the others declined. The OPAs were mostly lower. The PEKs held firm, whilst the high-priced PEK1s were easier. The balance sold around last levels. 

In the Tippy catalogue, the well-made FBOPs were firm to dearer, whilst the balance was irregular, following quality. A few Select Best FBOPF1s appreciated, whist the balance was firm. 

In the Premium catalogue, the Very Tippy teas met with good demand and were dearer. The Best and Below Best varieties too followed a similar trend, whilst the teas at the lower end teas were easier.