Tea auctions this week

Wednesday, 6 July 2016 00:00 - - {{hitsCtrl.values.hits}}

By Forbes and Walker Tea Brokers

The 26th sale of the year which was concluded yesterday had on offer a total of 6.4M/kgs. There was good demand.

Low Growns comprised of 2.8M/kgs in the Leafy/ Tippy catalogues. There was good demand. In the Leafy catalogue select best BOP1/OP1’s were irregular whilst others were fully firm to dearer. OP/OPA’s too were fully firm to dearer with clean below best types gaining Rs.10-20/- per kg at times. At the lower end however stalky varieties were easier. PEK/PEK1’s too were firm to selectively dearer. In the Tippy catalogue FBOP/FF1’s were fully firm to dearer. At the lower end too prices were generally firm. In the Premium catalogue too most teas were fully firm to dearer. There was good demand from shippers to CIS, Dubai, Turkey, Iraq, Saudi Arabia and Kuwait.

Ex-Estate offerings comprised of 0.9M/kgs marginally below last week’s availability. There was better demand all around although quality of offerings showed no significant change. Best Western BOP’s gained Rs. 10-20/- per kg and substantially more for select invoices following airmail inquiry whilst the corresponding BOPF’s were up to Rs. 20/- per kg dearer. In the below best category BOP’s were firm and Rs. 5-10/- per kg dearer on select invoices whilst the corresponding BOPF’s gained Rs. 10-20/-per kg. Plainer BOP’s were up to Rs. 10/- per kg dearer. Corresponding BOPF’s gained Rs. 20/- per kg for the clean leaf types whilst the poorer types were firm and dearer to a lesser extent. Nuwara Eliya BOP/BOPF’s were irregular. Udapussellawa’s were firm and up to Rs. 10/- per kg dearer whilst majority of the Uva’s sold around last week’s levels. CTC teas continued to sell well although prices tend to fluctuate following quality.

There was fair demand from shippers to CIS, Middle East, South Africa, Hong Kong and China whilst UK, the Continent and Japan appeared somewhat selective.

Next week’s Ex-Estate offerings show an improved selection of teas both from the Western and Eastern planting districts. The initial invoices of “pre-quality season Uva’s” are on offer next week and producers are eagerly looking forward to some encouraging prices for these teas.

Furthermore, Ceylon tea prices in the second half of 2016 are likely to show a further upward movement due to the global shortfall in Orthodox teas primarily due to the crop shortfall in Sri Lanka of approximately 10%.