Tea industry kicks off 2016 with lower sales average

Wednesday, 3 February 2016 00:16 - - {{hitsCtrl.values.hits}}

The tea industry has begun the New Year on a negative note reaffirming continuity of its bearish run.

According to Ceylon Tea Brokers Plc, Sri Lanka Tea Sale Averages for the Month of January 2016 were recorded at Rs. 410.94 per kilo down by Rs. 13.20 from a year earlier.

High Growns for the month of January recorded Rs. 411.83 up by Rs. 10.11 from January last year. Medium Growns however were down by Rs. 4.33 to Rs. 373.80 and Low Growns lower by Rs. 21.61 to Rs. 419.46.

The total CTC average for the month January 2016 recorded was Rs. 384.93. CTC High Growns recorded Rs. 384.07. CTC Medium Growns were at Rs. 357.42 whilst CTC Low Growns recorded Rs. 404.01.

Commenting on this week’s auction, Ceylon Tea Brokers said a total quantity of approximately 6.5 m kg was offered at the auction. The ex-estates consisted 1 m kg and declined from last week’s levels. The quality of ex-estate offerings showed a decline from last week’s levels.

Best western BOP/F where quality was improved, gained by Rs. 10-20 per kg. Teas in the below best category sold Rs.10 per kg lower. Improved Nuwara Eliya BOPs sold substantially dearer. Udapussellawa clean leaf BOP/Fs gained by Rs.10-20 per kg. Uva BOP/Fs sold Rs. 10 per kg lower.

CTC High, Medium & Low Grown BP1s sold lower by Rs. 10-15 per kg. High & Medium Grown PF1s sold irregularly lower whilst Low Grown PF1s sold firm to last week’s levels.

Medium Grown Orthodox varieties sold lower to last week’s levels whilst the liquoring FBOPs sold dearer.

Low Growns consisted approximately 3.1 m kg in the Leafy & Tippy catalogues and met with lower demand. Select best OP1s along with the below best OP1s sold firm to last week’s levels. Select best OP/OPAs along with the below best gained by Rs. 5 per kg. Select best and below best BOP1s declined. Bold PEKs continued to decline from last week’s levels and eased Rs.10 – 20 per kg due to border closures. PEK1s eased Rs.10-15 per kg.

In the small leaf tippy catalogues, select best FBOPs were lower by Rs.20 per kg and more. Best and below best together with the bottom declined further. Select best FBOPF1s were lower by Rs.20 per kg and more towards the end. Best and below best too followed a similar trend. FFs were irregular and mostly lower.