Mixed sentiments at Colombo tea auctions this week

Thursday, 30 May 2013 00:19 - - {{hitsCtrl.values.hits}}

The third consecutive Auction comprising of 8M/kgs on offer was concluded yesterday. High & Mid Grown small leaf teas met with improved widespread demand, whilst the Low Growns witnessed a bearish trend.

The quantity of Ex-Estate teas showed a decline and totalled 1.4M/kgs. Overall quality of teas offered showed no change with a greater weight of the offerings being of an average to plain quality. This week too, the better Westerns together with the Nuwara-Eliyas continued to decline further following quality, whilst, it was encouraging to witness widespread demand for teas in the below best and plainer categories - which (teas) consequently sold at irregular rates with select clean leaf teas appreciating in value. CTC teas too witnessed better demand and sold at firm to dearer rates. Liquoring leafy teas continued to sell well although at irregular rates following quality. The strong demand for teas at the lower end of the market would perhaps be an indication that the market in fact has bottom out.

Low Growns totalled 3.6M/kgs in the Leafy/Tippy catalogues this week. There was fair demand but at slightly easier levels. In the Leafy catalogue OP1’s were firm to selectively dearer, whilst the BOP1’s were generally easier. Better OP/OPA’s too were lower. At the bottom end however, there was good demand, resulting in prices being fully firm. PEK/PEK1’s too were fully firm to dearer. In the Tippy catalogue, a few select best together with a selection of clean below best FBOP/FF1’s maintained. Others were mostly lower to previous. Better FBOPFS’s were fully firm to dearer. Here again below best types were irregularly lower. There was good demand from Turkey, Iraq, CIS, Dubai, Kuwait and Saudi Arabia. (Source: Forbes and Walker Tea Brokers)