Good demand at tea auction this week

Friday, 17 May 2013 00:00 - - {{hitsCtrl.values.hits}}

A total of 8M/kgs came under the hammer this week – which is the largest weight on offer at an auction since the sale of 6 July 2011. Once again low growns continued to meet with good demand at irregular rates, whilst the high and mid grown small leaf teas continued to weaken in the backdrop of the larger volumes on offer.

Ex-estate offerings were similar to last and totalled 1.6M/kgs. Quality on offer was mostly lower to last – with a greater weight of the offerings reflecting fairly uninteresting quality. Consequently, the larger volumes combined with plainer quality continued the downward pressure on prices.

Better Western BOPs declined Rs. 10-20 whilst the corresponding BOPFs lost Rs. 5-10. On average all other BOPs declined up to Rs. 10 per kg whilst the corresponding BOPFs eased up to Rs. 20 per kg. Nuwara-Eliyas declined up to Rs. 30 per kg mainly following quality.

The majority of the teas from the eastern sector lost Rs. 10-20 and more for the poor leaf teas. CTC teas were no exception and here again, prices took a dip of Rs. 10-15 and more for the poor leaf teas – a disappointing feature considering the stronger market and the dearer trend in prices for CTC teas at this week’s Mombasa tea Auction.

Liquoring leafy teas barely maintained last week’s price structure and most teas sold between Rs. 450-500 respectively. Shippers to the CIS continued to be fairly active although at lower levels to last, whilst interest from other markets appeared limited.

Low grown totalled 3.6M/kgs in the leafy/tippy catalogues this week. In the leafy catalogue OP/OPAs tended lower, whereas PEK/PEK1s maintained. OP1s appreciated in value. Better BOP1s gained selectively. Others lower. In the tippy catalogue, select best FBOPs were lower. Below best and bottom were dearer. FF1s, together with the tippy grades were firm to dearer. There was fair demand from CIS, Turkey, Kuwait and Dubai.

(Courtesy: Forbes and Walker Tea Brokers)