Tea auctions this week

By Forbes and Walker Tea Brokers

Overall auction quantities totalled approximately 6.0 M/Kgs. Low Growns continued to meet with good demand, whilst High & Mid Grown Small leaf teas continued to witness downward pressure in prices following the lower quality and the higher volumes on offer. 

Ex-Estate offerings totalled 1.0 M/Kgs. Quality of most offerings were lower to last and consequently most teas from the Western planting districts declined Rs. 20-30 per kg. Teas from the Nuwara Eliya region were sharply lower in contrast to the high prices realised last week. Teas from the Eastern sector declined Rs. 30-40 per kg. High & Mid Grown CTC’s declined Rs. 20-30 per kg, whilst the corresponding Low Growns were lower to a lesser extent.  

Low Growns comprised of 2.3 M/kgs in the Leafy/Tippy catalogues. There was good demand. In the Leafy catalogue, better made OP1/BOP1’s were fully firm to dearer, whilst others were barely steady. At the lower end too there was fair demand and prices were firm to dearer. Select best OP/OPA’s were firm, whilst others commenced irregular but gained towards the close. At the lower end, prices were fully firm to dearer. PEK/PEK1’s too were firm to selectively dearer barring the bolder PEK’s which were barely steady. In the Tippy catalogue, a selection of well-made FBOP/FF1’s maintained. Others were irregular and lower. At the lower end, cleaner types were generally firm. In the Premium catalogue, high priced teas were irregular and barely steady. A few improved below best sorts however were firm to selectively dearer. There was good demand from shippers to Turkey, CIS, Dubai, Iraq and Saudi Arabia.

National average increases sharply compared to September 2018

National average for the month of October 2018 totalled Rs. 586.19 vis-à-vis Rs. 537.77 of September 2018, showing an increase of Rs. 48.52 month on month. However, in comparison to October 2017 Rs. 646.08 it shows a substantial decrease of Rs. 59.89.

When analysing the respective elevational averages for the month of October 2018:

• High Growns totalling Rs.612.04 has recorded a gain of Rs. 39.43 vis-à-vis Rs. 572.61 of September 2018; compared to October 2017 a decrease of Rs. 40.05 is evident YOY.
• Mediums averaging Rs. 540.24 has recorded the highest increase of Rs. 61.56 vis-à-vis Rs. 478.68 recorded in September 2018; compared to October 2017 which recorded Rs. 577.36 shows a decrease of Rs. 37.12.
• Low Growns totalling Rs. 590.99 have recorded an increase of Rs. 48.33 vis-à-vis Rs. 542.66 of September 2018; compared to Rs. 660.34 of October 2017, it shows a significant decrease of Rs. 69.35 YOY.

When analysing the January-October 2018 cumulative average of Rs. 582.36 a decrease of Rs. 34.86 is recorded vis-à-vis Rs. 617.22 of January-October 2017.

High Growns for the period January-October 2018 of Rs. 574.22 have shown a decrease of Rs. 19.82 vis-à-vis Rs. 594.04 of January-October 2017. Mediums, too, averaging Rs. 523.56 have shown a decrease of Rs. 40.15 vis-à-vis Rs. 563.71 of January-October 2017. Meanwhile, Low Growns totalling Rs. 600.06 of January-October 2018 has shown a decline of Rs. 37.92 vis-à-vis Rs. 637.98 of January-October 2017. Both the month and cumulative averages continues to show a greater decrease in USD terms compared to the corresponding period of 2017 with Sri Lankan Rupee depreciating sharply, particularly in the months of September & October.