Tea quantities continue decline at auction

Friday, 21 October 2016 00:00 - - {{hitsCtrl.values.hits}}

Despite the high point of resolving wage issues with plantation workers, bad news continued to dodge the tea industry this week as overall auction quantity declined further, totalling 5.0M/kgs with prices expected to remain lacklustre, tea brokers said.

Ex-Estate offerings recorded a marginal increase and totalled a 0.7M/kgs. There was good demand and it was pleasing to note some element of categorisation between the better teas and the others with particular emphasis and preferences noticed for teas with coloury strong liquors, Forbes and Walker said in its weekly tea report.

This view was concurred with by John Keells Holdings Tea Brokers, which pointed out that demand for the Ex-Estate offerings comprising 0.69Mkgs was irregular and unsteady at the start of the sale, but strengthened as the sale progressed with teas with merit attracting buyer interest.

“Overall quality of teas from the western planting districts showed a little improvement whilst the Nuwara Eliyas together with the Uva/Udapussellawas showed no significant change,” the JKH report said.

Best Western BOPs gained Rs. 10-20 per kg whilst in the corresponding BOPFs category, select coloury teas gained Rs. 10-20 per kg whilst the others were irregular. BOPs in the below best and plainer categories were barely steady whilst the corresponding BOPFs particularly in the below best category which commenced at lower levels moved up as the sale progressed and were mostly firm by the close.

Nuwara Eliyas – better BOPs were sharply lower and difficult of sale whilst the others sold around last week’s levels. Corresponding BOPFs recorded a sharp decline on last week’s levels and consequently, most teas remained unsold at the Auctions.

Udapussellawa BOP/BOPFs were mostly firm. Uva BOPs gained Rs. 20-40 per kg whilst the corresponding BOPFs declined Rs. 10-20 per kg. CTC teas in the High and Medium Grown categories gained Rs. 10-20 per kg whilst the Low Growns were firm and up to Rs. 10 per kg dearer on select invoices.

There was fair demand from shippers to CIS, China, Hong Kong and Japan whilst the UK and the Continent continued to be fairly selective.

Low Growns comprising of 2.4M/kgs, a slightly lesser volume compared to the preceding sale came up for sale in the Leafy/Tippy catalogues. There was excellent demand all round. In the Leafy Catalogue BOP1/OP1s gained Rs.10-15/- per kg and more whilst OP/OPA’s too were dearer to previous. PEK/PEK1s too gained Rs. 10-15 per kg with a selection of shotty types in the below best category gaining further.

In the Tippy catalogue too better FBOP/FF1’s gained Rs.10-15/- per kg whilst the cleaner scondaries too followed a similar trend. Others were fully firm. In the Premium catalogue too, a select range of teas gained on last whilst others were fully firm. There was good demand from shippers to CIS, Turkey, Dubai, Iraq, Kuwait and Saudi Arabia this week.