Tea auctions this week

By Forbes and Walker 

Tea Brokers

The 20th sale of the year, which concluded yesterday, had a total of 7.93M/kg on offer. 

There was fair demand mostly at easier rates. Ex-Estate offerings were fairly large and totalled 1.5M/kg. Better Western BOPs declined by Rs. 20-30 per kg and more for last week’s high priced teas. The corresponding BOPF had on offer a few select invoices which gained substantially whilst the majority declined by Rs. 20-40 per kg and more following quality. 

In the below best category, a selection of BOPs gained Rs. 20-40 per kg following special inquiry whilst the corresponding BOPF declined up to Rs. 50 per kg. Plainer BOPs were irregular whilst corresponding BOPF - clean leaf teas up to Rs. 50 per kg easier, others Rs. 20-30 per kg easier. 

Nuwara Eliyas too were mostly lower following quality. Uva/Udapussellawa BOP/BOPF declined by Rs. 20-50 per kg. CTC teas were also lower by Rs. 20 per kg and more. Liquoring leafy teas continued to be neglected.

A salient feature of the sale was the strong demand for the limited availability of BOPs which are now commanding a premium of Rs. 30-50 per kg over their corresponding BOPF in most instances. It would also be relevant to note the bottom of the market for BOP/BOPF, which has settled between Rs. 500 and Rs. 520 per kg, is in keeping with the corresponding levels of last year. Notwithstanding, approximately a 5% depreciation of the SLR.

Low Growns totalled 3.1M/kgs in the Leafy/ Tippy catalogues. There was fair demand at lower levels. In the Leafy catalogue, a limited selection of well-made BOP1/OP1s maintained whilst others were irregular and lower. OP/OPAs too were generally lower by Rs. 5-10 per kg and more, particularly where quality was not maintained. Select best PEK/PEK1s were firm whilst others were barely steady. 

In the Tippy catalogue too, a select range of well-made FBOP/FF1s maintained while others were mostly lower. At the lower end too prices were generally lower to last by Rs. 10-15 per kg and more for the teas that did not maintain leaf style. 

In the Premium catalogue, a select range of well-made teas maintained whilst others were mostly lower to last. There was good demand from shippers to CIS, Turkey, Saudi Arabia, Iraq, Libya and Dubai.