The tea prices at the Colombo Tea Auction reached record levels this October increasing to Rs. 550.92 from Rs. 390.13 Year-on-Year (YoY), after volumes fell sharply, continuing a trend observed in September.
“Auction average for the month of October totalled Rs.550.92 vis-à-vis Rs.390.13 of October 2015 showing a substantial gain of Rs.160.79 thus establishing the highest ever average for a calendar month,” Forbes and Walker Tea Brokers said.
Prices in September too reached all-time monthly highs, at Rs. 512.03, and Forbes & Walker note that teas from all 3 elevation levels recorded increases in October.
Auction prices usually increase during this period as demand increases due to markets in the Northern Hemisphere ordering ahead of their winter season.
However, the volumes on sale decreased nearly 30 percent YoY to 19.7 million kilogrammes.
“Auction averages reached record levels in the backdrop of a sharp decline in availability,” Forbes & Walker noted.
The average tea price for the first 10 months of 2016 was up to Rs. 450.84 from Rs. 400.04 YoY.
The volumes of tea available for auction continued to fall during the first auction of November, down to 4.5 million kilogrammes from 4.6 million kilogrammes auctioned off last week.