Tea auction prices stabilise on improved demand

The Colombo Tea Auction offerings totalled 6.0 million kilogrammes (M/Kgs), whilst noting a declining trend in the forthcoming sales. 

Improved demand and greater stability in prices were seen this week.    

The Ex-Estate offerings comprised of 0.7 M/Kgs and here again, a declining trend. A selection of Westerns maintained reasonable levels of quality, whilst a greater majority still continued to be of fair average quality.  

In the Western category, the Best BOP/BOPFs – where quality was maintained – continued to sell around last, whilst the others were irregular, following quality. In the Below Best category, a selection of improved BOPs gained by Rs.20-40 per kilogramme, whilst the others together with the teas at the lower end of the market were irregular. The corresponding BOPFs – a selection of improved teas, gained by Rs.50-80 per kilogramme and more, whilst the others were irregular and easier by Rs.20-40 per kilogramme.  The BOPFs at the lower end appreciated by Rs.50 per kilogramme and more. The Nuwara Eliyas were mostly unsold. The Uda Pussellawas commenced on a sluggish note and strengthened by up to Rs.50 per kilogramme by the close. The Uvas witnessed a mixed demand and an irregular trend in prices.   

The High and Medium Grown CTC teas showed no significant change in the overall pricing, whilst the corresponding Low Grown types were firm and tended dearer. 

There appeared to be less activity from the shippers to the UK, continent and South Africa. The shippers to Japan and China appeared reasonably strong, whilst the shippers to the Middle East and CIS, perhaps in particular, showed improved activity.  The Low Growns totalled approximately 2.5 M/Kgs, with fair demand witnessed in the Leafy, Semi-Leafy, Tippy and Premium categories.

In the Leafy and Semi-Leafy catalogues, the well-made BOP1s maintained at last levels, whilst the Below Best and bolder varieties were irregular. The teas at the bottom and well-made OP1s held firm, whilst the balance was irregular. The well-made OPs together with the cleaner Below Best and shorter varieties appreciated, whilst the others were firm on last. 

The high-priced OPAs were dearer, whilst the balance sold around last levels. The high-priced PEKs were easier, whilst the Best sold at last levels. However, the balance eased. A selection of high-priced PEK1s gained, whilst the others declined.

In the Tippy catalogue, the Select Best FBOPs appreciated, whilst the balance was firm to dearer. The well-made FF1s and cleaner Below Best types were firm to dearer, whilst the balance was irregular, following quality. 

In the Premium catalogue, the Very Tippy Teas together with the Best were dearer, whilst the Below Best too were dearer to a lesser extent. The balance was irregular.