Tea market turns bearish on stronger rupee

The auction offerings recorded a further increase and totalled 6.4 million kilogrammes (M/Kgs), Forbes & Walker Tea Brokers said.

The Leafy and Semi-Leafy teas in the Mid and Low Grown elevations continued to meet with good demand, realising satisfactory prices for the time of year. 

The High and Mid Grown Orthodox Rotovane BOP/BOPFs witnessed a bearish market sentiment more so towards the close of the sale, as the USD/LKR spot rate plunged 2.4 percent to Rs.329 in early hours of trading after the Central Bank imposed new forex conversion rules on exporters yesterday.

The Ex-Estate offerings increased marginally and totalled 1.0 M/Kgs. Once again, the overall quality was barely maintained, with a greater availability of teas comprising of plain to fair average quality teas. 

The demand continued to be centred around the teas which possessed a good cup colour and strength, whilst those with light and thin liquors were often discounted. 

The teas at the bottom end of market commenced firm to marginally easier and declined further towards the close with unsold volume progressively increasing.

The most impacted sector would be the High and Medium Grown CTC teas, with a greater majority of the offerings remaining unsold, due to a lack of suitable bids. However, the corresponding Low Grown varieties continued to sell well.

Less activity was seen as the US/Iran conflict continues to dampen market activity, primarily emanating from the shipping and logistics constraints.

The Low Growns totalled approximately 2.5 M/Kgs. Fair demand was witnessed in the Leafy, Semi-Leafy and Tippy categories, whilst the Premium category met with good demand.

In the Leafy and Semi-Leafy catalogues, the high-priced BOP1s/OP1s declined, whilst the balance sold around last levels. A selection of high-priced OPAs appreciated following special inquiry, whilst the balance together with the OPs was easier. 

The Select Best and Best PEKs together with the cleaner Below Best were firm to dearer, whilst the balance was easier. The well-made PEK1s were irregular, whilst the balance was lower.

In the Tippy catalogue, the Select Best FBOPs appreciated, whilst the balance sold around last levels. The well-made FF1s were firm, whilst the others were irregular, following quality. In the Premium catalogue, the Tippy teas in general appreciated.