Overall auction quantities declined to a seven m/kgs this week. There was good demand with most teas on offer selling at firm to dearer rates.
The seasonal teas from the Western High Growns attracted airmail enquiry on a wider cross section of teas this week. Others together with the Low Growns witnessed a firm to dearer trend which could be attributed to a great extent, to the weakening of the SLR.
The rupee hit a new all time low on Tuesday “as it fell by 1.6% to a record low of Rs. 123.40 against the dollar.
Ex-Estate offerings were similar to last and totalled a 1.2 m/kgs. Quality of teas from the Western planting districts though irregular had on offer a fair selection of useful seasonal Westerns. These teas were selectively absorbed at dearer rates following airmail enquiry.
Most other teas on offer appreciated Rs. 5-10 on average in most instances with the exception of the plainer BOP/BOPFs which were barely maintained at previous week’s price levels. The price structure for the CTCs saw no significant change and could be quoted irregularly firm following quality. Demand for the liquoring leafy teas particularly from the Nuwara-Eliya regions met with less demand and the prices being lower – still continue to be attractive considering the poor demand for the corresponding BOP/BOPFs from this region. The better liquoring teas were sought after by Shippers to UK, Japan, Continent and South Africa. Shippers to CIS lent better support this week together with Pakistan.
This week’s Low Growns comprised of 3.6 m/kgs in the Leafy/Tippy catalogues. In the Leafy catalogue, better made PEK/PEK1s sold at fully firm to dearer rates. Others too sold around last levels. Better OP/OPAs were barely steady. However at the lower end of the market, there was wide spread demand resulting in prices gaining Rs. 10-15 per kg. Select best BOP1/OP1s sold around last levels. Others were mostly lower.
In the Tippy cataloge, better FBOP/FBOPF1s were firm. Others were irregular and lower, particularly following quality. A select range of well made Tippy invoices sold at firm to dearer rates. Balance was easier to last. There was good demand from CIS, Dubai, Turkey, Saudi Arabia, Kuwait, Libya and Iraq. (Source: Forbes and Walker Tea Brokers)