Weak overseas demand weighs on tea auction prices

The auction offerings increased further to 6.5 million kilogrammes (M/Kgs), marginally up from 6.4 M/Kgs on offer the previous week. 

The prices for the Leafy/Semi-Leafy teas in the High and Mid Grown regions continued to be reasonably maintained subject to fluctuations within certain grades, whilst the High and Mid Grown Orthodox/Rotovane BOP/BOPFs weakened further with the corresponding CTCs being the most impacted.      

The Ex-Estate offerings totalled 1.0 M/Kgs. Overall quality remained relatively uninteresting with only a small selection of better liquoring teas.

In the Western High Grown category, the Best available BOP/BOPFs often declined by Rs.20-40 per kilogramme and more following quality, whilst in the Below Best and Plainer categories too the overall prices eased by an average Rs.20 per kilogramme with a fair weight remaining unsold, due to a lack of suitable bids. 

The Nuwara Eliyas met with hardly any interest and majority of the BOP/BOPF invoices remained unsold. The Uda Pussellawa BOPs weakened further by up to Rs.50 per kilogramme, whilst the corresponding BOPFs barely maintained last levels and sold well in to the bottom end of the market. 

The Uva BOPs – Better sorts, sold around last, whilst the others declined by Rs.50 per kilogramme. The corresponding BOPFs were firm and up to Rs.20 per kilogramme easier on last week’s closing levels.   

The High and Medium Grown CTC teas continued to be the weak feature with a greater majority of the teas remaining unsold and where sold, recording a price drop of Rs.20-40 per kilogramme.

The Off Grades, comprising of the teas at the lower end of the market, continued to weaken further, with a fair volume remaining unsold.

The interest for the Dust grades continued to be sluggish, notwithstanding the overall availability having reduced vis-à-vis the previous week.

There appeared to be hardly any interest from the shippers to the UK and continent. The shippers to South Africa remained selective, whilst Japan and China operated at lower levels. The shippers to the CIS and Middle East showed their presence, here again at lower levels and in a selective manner.      

The Low Growns totalled approximately 2.7 M/Kgs. The Leafy and Semi Leafy categories met with fair demand, whilst the Tippy and Premium categories met with good demand.

In the Leafy and Semi-Leafy catalogues, the BOP1s in general were firm. The well-made OP1s together with the teas at the lower end declined, whilst the Below Best sold around last levels. 

The well-made OPs were firm, whilst the balance was easier. A selection of high-priced OPAs appreciated following special inquiry, whilst the balance in general were easier. The well-made PEKs were firm to dearer, whilst the balance was easier. The Select Best PEK1s together with the Below Best and teas at the bottom declined, whilst the Best sold around last levels.

In the Tippy catalogue, the high-priced FBOPs were firm, whilst the balance appreciated. The teas at the bottom were irregular, following quality. The FF1s, in general, were dearer.  

In the Premium catalogue, the Tippy teas met with good demand and in general were dearer.