Better brew at Tea auction this week

Saturday, 9 October 2010 00:46 -     - {{hitsCtrl.values.hits}}

The latest Colombo tea auction this week indicated healthy and firm growth for better teas and was concluded successfully with an offering of 6.2 million kgs.

A larger share of the offering was from the main low grown catalogues which offered an approximate 50 per cent of the entire sales with 3.3 million kgs while high and mid grown ex-estate teas offered amounted to 0.4 million kg.

Better demand was seen in the leafy low grown category as well as BOP1/OP1 which sold at higher prices. Secondaries too were dearer but to a  lesser extent.

All others remained firm including the better OPs. On a macro note demand for all categories remained firm except high priced OPAs.

Director of Forbes and Walker tea brokers (Pvt) Ltd Dilan Polonwita yesterday speaking to Daily FT stated that the markets remained positive for teas which had maintained quality and standards in both low grown and high grown varieties. “There was good demand for small leaf varieties, but at lower levels. Better BOP/BOPF appreciated in value but others tended lower.

“Better teas had good demand this previous week with buyer’s readily purchasing stock. However buyers were more selective in purchasing lower quality teas.”

On weather conditions during the past week; wide spread rain fall was reported from all tea growing areas. Some reports of localised flooding in the low country and reduced worker turnout was also indicated. Crop intake from the western slopes showed a slight decline whilst low growns and Easterns recorded moderate harvest.

Projections for the rest of the month runs on the same line with better teas expecting to attract good demand from buyers.

However Polonwita warned that if producers are not careful in the future more secondary types will come in jeopardising the continuing trend for demand for better quality teas.

Speaking on the tea auctions and its demands and variations during the month of September, Polonwita asserted that the month had been a substantially good one. The average for lower country teas had come to a 110 per cent in August while high growns for September had stood at 330 per cent.

“Prices were exceptionally steady the first weeks of September and showed a slight decline by the end of September. We expect the positive trend will continue during the month of October as well,” Polonwita ended on a positive note.