Improved demand at Colombo Tea Auction this week

• Correction in parity rate between rupee/US dollar helped in overall strengthening of tea prices this week 

A total of 5.1 MnKgs came under the hammer at this week’s Colombo Tea Auction, which was met with improved demand, particularly as the sale progressed. 

“Perhaps a correction in the parity rate between the Sri Lanka rupee/US dollar would no doubt have helped in the overall strengthening of the tea prices this week,” said Forbes and Walker Tea Brokers in its latest tea auction report. At last week’s tea auction, substantial quantities went unsold, due to the sudden appreciation of the rupee against the US dollar.

This week, the Ex-Estate offerings comprised of 0.74 MnKgs. Here again, there was improved demand and particularly a stronger tone at the lower end of the market.  

The Best Western BOP/BOPFs were firm and up to Rs.50 per kg and Rs.100 per kg dearer, respectively, with a few select invoices gaining further, following special inquiry. In the Below Best category, the better BOPs appreciated up to Rs.50 per kg, whilst the others together with the teas at the lower end of the market
gained further. 

 The corresponding BOPFs appreciated Rs.50 per kg and more for the teas at the lower end of the market. The Nuwara Eliya – Select Best BOPs were dearer, whilst the others were difficult of sale. The corresponding BOPFs were irregular and easier.   The Uda Pussellawa – Better BOPs were irregular, whilst the others were often easier. The corresponding BOPFs were firm and Rs.20-40 per kg dearer. The Uva BOPs gained Rs.50 per kg and marginally more for select invoices, whilst the corresponding BOPFs were firm, with select coloury invoices gaining up to Rs.100 per kg.   

The High and Medium CTC teas – BP1s were limited on offer and the prices were often irregular, following quality. The corresponding PF1s – better brighter liquoring sorts, were up to Rs.50 per kg dearer, whilst the others were barely steady. The Low Grown types – BP1s were firm and Rs.20-30 per kg dearer, whilst the PF1s commenced firm and appreciated Rs.20-40 per kg as the sale progressed.    The Low Growns comprised of 2.1 MnKgs. At the commencement, a bearish undertone prevailed and an improvement was witnessed all round as the sale progressed.  In the Leafy and Semi Leafy catalogues, the select Best OP1/BOP1s were easier, whilst the balance was firm towards the close. The teas at the bottom were irregular and mostly lower. The OP/OPAs in general were firm, whilst the teas at the bottom were easier. The well-made PEK/PEK1s were firm to selectively dearer, whilst the mixed varieties were easier. The teas at the bottom too were lower, following quality. In the Tippy catalogues, the select Best FBOPs were firm to easier, whilst the balance sold around last levels. The teas at the bottom declined. The FF1s were substantially lower at the commencement of the sale. However, they were firm to selectively dearer as the market improved towards the closure of the sale. The teas at the bottom were irregularly easier.

In the Premium catalogues, the very Tippy teas continued to decline, whilst the Best and Below Best varieties sold around last levels. The teas at the bottom eased.