Good demand at tea auctions this week

Friday, 16 March 2012 00:01 - - {{hitsCtrl.values.hits}}

The 11th sale of the year which was concluded on 14 March had on offer 6.8m/Kgs. There was good demand.

Ex-Estate offerings showed a marginal increase and totalled 1.2m/Kgs. The quality of teas from the Western planting districts were irregular and barely maintained, whilst, teas from other planting districts showed no significant change.

Here again, there was improved demand, particularly for teas from the lower end of the market. Select seasonal quality Westerns moved up in value mainly following airmail enquiry, whilst, the other better liquoring teas witnessed irregular demand following quality.

There was improved interest from Shippers to the CIS with the buying concentrated mainly around the below best and plainer category teas. Shippers to the UK, Japan and the Continent continued to be active on the better liquoring teas, whilst some interest was shown from Pakistan and possibly South Africa.

This week’s upward movement in prices, in addition to the improved demand mainly emanating from the CIS sector - triggered as the rupee hit a record low. Interestingly, the rupee US$ parity which commenced at Rs. 122.10 closed at Rs.124.20 – indeed a steep depreciation within a day’s trading.

Off Grade and Dust followed a similar trend.

Low Growns comprised of approximately 3.3m/Kgs in the Leafy/Tippy catalogues. In the Leafy catalogue, OP/OPAs were generally firm to dearer with the teas at the lower end in particular gaining Rs.5-10 per Kg. BOP1/OP1s were mostly lower. PEKs too sold well with the bolder types being stronger to previous.

In the Tippy catalogue too select ranges of FBOP/FBOPF1s together with a range of cleaner secondaries though irregular were firm. A select range of well made Tippy invoices too sold at fully firm to dearer rates.

In others, where the leaf style was not maintained, prices declined. At the lower end there was better demand resulting in prices gaining Rs. 5-10 per Kg. CIS, Dubai, Turkey, Iraq, Lybia, Kuwait together with Saudi Arabia were active this week.

(Source: Forbes & Walker Tea Brokers)