Tea auctions: Volume, demand low

Thursday, 31 May 2012 01:19 - - {{hitsCtrl.values.hits}}

The overall volume of teas on offer this week was lower to previous and totalled a 7.3m/Kgs. There was less demand all around and mostly at easier rates. A disappointing sale, particularly for the High and Mid Grown small leaf teas.

Ex-Estate offerings comprised of 1.3m/Kgs. A few select Westerns showed a little improvement in quality whilst, others together with the Uva/Udapussellawas were mostly similar to last. Few of the Best Western BOPs sold around last levels whilst, all others together with the corresponding BOPFs declined Rs. 10-20 per kg.

Teas in the below best/plainer categories declined by Rs. 5-10 and more particularly for the poor leaf/plain liquoring teas. CTCs met with slightly better demand with select clean leaf coloury teas selling around last week's levels. Here again, the poor leaf types declined Rs. 10 per kg and more. Liquoring leafy teas also met with less demand and declined Rs. 10-20 and more.

The bottom of the market for BOP/BOPFs have now declined to Rs. 300 (US$ 2.27) and Rs. 350 (US$ 2.65) respectively and the corresponding sale of last year – BOP Rs. 310 (US$ 2.81), BOPF Rs. 320 (US$ 2.90). Therefore, in the backdrop of the global tea production recording a decline the current auction prices appear to reflect good value particularly in US$ terms.

Low Growns comprised of 3.3m/Kgs in the Leafy/Tippy catalogues. There was fair demand but at slightly lower levels. In the Leafy catalogue, better OP/OPAs were easier. A selection of clean below best together with the teas at the lower end were generally firm. PEK/PEK1s too were fully firm to selectively dearer. Better OP1/BOP1s however declined to last.

In the Tippy catalogue, a select range of FBOP/FBOPF1s were firm. Others were mostly lower to last. At the lower end too, a range of cleaner teas maintained. Others declined. FBOPFS/FBOPFEXSPs were a lower feature. There was good demand from Turkey, CIS, Iraq, Dubai, Kuwait and Saudi Arabia.

(Source: Forbes and Walker Tea Brokers)