Mixed bag at 1st tea auction for 2019

By Forbes and Walker Tea Brokers

The first sale of the year, last week, was a one-day restricted sale with a total quantity of 4.1 m/kg on offer. Low Grown Large Leaf teas witnessed a buoyant market, whilst High & Mid Grown Small Leaf teas encountered a bearish sentiment.

Ex-Estate offerings comprised of 0.8 m/kg. There was fair demand mostly at easier rates. Best Western BOP/BOPF’s declined Rs. 20 per kg and more for select high priced teas of the last Auction. In the Below Best category, BOP/BOPF declined Rs. 20 per kg and Rs. 20-30 per kg respectively. Teas at the lower end of the market sold at firm to dearer rates, particularly the clean leaf teas. Nuwara Eliyas – witnessed a disappointing trend, particularly due to its relatively uninteresting quality profile. Teas from the Udapussellawa Region witnessed an appreciation from the low price levels realised at the preceding Auction. Uvas – BOP’s were irregular, whilst the corresponding BOPF sold around last week’s levels. CTC teas sold around last levels with no significant change in the overall prices. Improved demand for the limited availability of Liquoring Leafy teas – indeed encouraging.

With the conclusion of the holiday period, better demand is expected from most Western markets in the forthcoming sales.

Low Growns comprised of 1.7 m/kg in the Leafy/Tippy catalogues on account of the restricted sale this week. There was good demand. In the Leafy catalogue, BOP1/OP1’s were fully firm to dearer. Better OP/OPA’s too were firm, whilst others were irregular particularly where quality was not maintained. At the lower end, prices were generally firm to last. Better PEK/PEK1’s too were fully firm, whilst others were irregular and lower. At the bottom end however, prices were fully firm to dearer. In the Tippy catalogue, better FBOP’s were irregular, whilst a selection of below best types were fully firm. FF1’s in general were fully firm to dearer. At the lower end cleaner types maintained. Others were barely steady. In the Premium catalogue, there was good demand with the select best types gaining on last. Others too were firm. There was good demand from shippers to Turkey, Dubai, Iraq, CIS and Saudi Arabia.