Muted reaction in tea market despite lower supply and rupee devaluation

The auction offerings dropped down to 5.0 million kilogrammes (M/Kgs) and the overall quality of the teas showed no significant change. 

There was fair demand. Notwithstanding the lower volumes on offer and a significant devaluation of the Sri Lankan rupee week-on-week, it was disappointing to note that the tea market failed to react in a positive manner.  

The Ex-Estate offerings too continued to be limited and totalled 0.6 M/Kgs. Here again, the overall quality of the teas was fairly similar to last and a concerning factor would be the weakening in prices for the better teas, particularly the BOPs, whilst the tea for the price category continued to sell well.  

The CTC teas continued to sell around last, with limited price fluctuations.  

Limited activity was seen from the shippers to the UK and continent. There appeared to be less activity from the shippers to China, selective buying from the shippers to South Africa, whilst the shippers to Japan, the CIS and Middle East continued to operate as usual.  

The Low Growns totalled approximately 2.2 M/Kgs, with fair demand witnessed by all categories. The shippers to Iran, Russia and Turkey were fairly active.   

In the Leafy and Semi-Leafy catalogues, the BOP1s in general were firm to dearer. The Select Best and Best OP1s together with the cleaner Below Best appreciated, whilst the balance was irregular, following quality. The well-made OPs were dearer, whilst the teas in the Below Best category were firm. 

The shorter OP varieties together with the teas at the bottom declined. The high-priced OPAs gained, whilst the balance sold around last levels. The PEKs, in general, were firm. The high-priced PEK1s maintained, whilst the Best and Below Best together with the teas at the bottom were irregular and mostly lower.

In the Tippy catalogue, the Select Best and Best FBOPs were firm to selectively dearer, whilst the others sold around last levels. The FF1s, in general, were firm to dearer. 

In the Premium catalogue, the Very Tippy were dearer, whilst the Best too followed a similar trend. The Below Best together with the teas at the bottom were firm.