Low volumes at Colombo Tea Auction a concern: Brokers

The 40th sale of the year, which concluded this week, had on offer a small volume of tea, comprising of 4.7 million kilogrammes. 
“Once again, notwithstanding the limited volume on offer, the bearish market sentiment would no doubt be of concern,” said Forbes and Walker Tea Brokers.

The Ex-Estate offerings were limited and totalled 0.6 million kilogrammes while their quality was irregular and barely maintained, whilst a firm to easier trend in prices were recorded. 
There was less demand from the UK and continent. There was fair interest from Japan, whilst the shippers to the CIS continued to bid on a wide cross-section of the teas although often at easier rates, perhaps adversely impacted following the depreciation of the Russian ruble. 
In the Best and Below Best categories, the teas in the Western slopes recorded a firm to easier trend by up to Rs.50 per kilogramme and more for select invoices. Greater activity at the lower end resulted in an irregularly firm trend. The teas from the Nuwara Eliya region gathered some momentum for the better teas, which was somewhat encouraging. 
The Uva/Uda Pussellawa BOPs were neglected and were often unsold, with bids registering lower values in excess of Rs.100 per kilogramme against last week’s prices. The corresponding BOPFs sold firm, with better teas appreciating by Rs.20-40 per kilogramme.  
Except for the teas in the Best category, the BOPs in general encountered weak demand and sold significantly below the corresponding BOPF prices. 
The High and Medium Grown CTC teas sold around last week’s levels. The corresponding Low Grown varieties – BP1s, appreciated by Rs.100 per kilogramme, whilst the PF1s were weaker and easier by Rs.50 per kilogramme and more particularly towards the closure of the sale.   
The Low Grown offerings were similar to last and totalled 1.9 million kilogrammes. The Leafy, Semi-Leafy and Tippy catalogues met with fair demand. The overall quality of teas was disappointing and many teas were discounted following lower quality. In the Leafy catalogues, a few select Best OP1s were selectively dearer, whilst the balance was firm. The Select Best BOP1s were firm, whilst the teas in the Best category were firm to dearer. However, the balance declined. The well-made OP/OPAs were firm to dearer, whilst the balance sold around last levels. The Select Best PEKs appreciated, whilst the balance declined. However, the PEK1s in general were firm.    
In the Tippy catalogues, the select Best FBOPs appreciated. The Best and clean leaf Below Best sold at last levels, whilst the balance was easier following quality. The Select Best FF1s declined. The Best together with the clean leaf Below Best sold around last levels, whilst the balance was easier.     
In the Premium catalogues, the very Tippy teas met with good demand and were firm to selectively dearer. The Best and Below Best, particularly the Leafier varieties, appreciated, whilst the balance sold around last levels. However, the smaller Tippy varieties declined.