Tea auction holds firm as buyers shrug off Middle East uncertainty

Auction No. 10 that concluded was the second auction following the recent tension in the Middle East and notwithstanding the speculation of adverse repercussions vis-à-vis the overall demand/prices at the auctions – there was good general demand, with only the Tippy teas declining substantially and at times being unsellable. 

The total auction quantities declined further, with approximately 5.0 million kilogrammes (M/Kgs) on offer, of which the Ex-Estate offerings totalled 0.75 M/Kgs, down from 0.8 M/Kgs the previous week.  

The offerings in the Ex-Estate catalogues showed less availability of the Select Best seasonal Westerns, whilst it continued to have on offer a fairly useful selection of teas, particularly from the Western and Nuwara Eliya regions.   

The Better Western BOP/BOPFs were firm with select BOP, BOPSp and PEK invoices appreciating up to Rs.50 per kilogramme. In the Below Best category, the select brighter BOPs appreciated by Rs.20-40 per kilogramme, whilst the others were irregular. 

The corresponding BOPFs in the higher price bracket sold around last levels, whilst the others were firm and up to Rs.20 per kilogramme dearer. At the lower end of the market, the prices for BOPs were irregular, whilst the corresponding BOPFs were firm and up to Rs.20 per kilogramme dearer. 

The Nuwara Eliyas continued to sell reasonably well, following quality. The Uda Pussellawas were a weak feature. The Uva – High-priced BOPs of last week declined by Rs.50 per kilogramme and more, whilst the others were generally firm. The corresponding BOPFs were firm and up to Rs.20 per kilogramme dearer selectively.  

The High and Mid Grown CTC teas showed no significant change in overall pricing. The corresponding Low Grown BP1s were generally firm, whilst the PF1s met with better demand and a firm to dearer trend in prices.  

The Low Growns totalled approximately 2.1 M/Kgs. The Leafy, Semi-Leafy and Tippy categories met with fair demand, whilst the Premium category witnessed less demand. 

In the Leafy and Semi-Leafy catalogues, the Select Best and Best BOP1s maintained, whilst the balance together with the bolder varieties declined. 

The well-made OP1s were firm, whilst the teas in the Below Best category appreciated. The teas at the bottom sold around last levels. 
The OP/OPAs, in general, maintained. The well-made PEKs were firm, whilst the Below Best varieties declined. The teas at the lower end sold at last levels. The PEK1s, in general, appreciated.

In the Tippy catalogue, the well-made FBOPs together with the cleaner Below Best and neater bolder varieties were firm, whilst the balance was easier. The FF1s, in general, were firm to easier, whilst the teas at the bottom declined.

In the Premium catalogue, the Tippy teas, in general, declined substantially and at times were unsellable due to a lack of suitable bids.