Tea cheers!

Thursday, 7 November 2013 00:42 - - {{hitsCtrl.values.hits}}

Colombo Tea Auction brews highest-ever average in rupee and dollar terms in October

The cup that cheers is toasting best news much to the delight of the tea industry as October has produced highest-ever prices on average, according to two brokers – Ceylon Tea Brokers Plc and Asia Siyaka Commodities Plc. The Colombo Tea Auction has brewed an average of Rs. 494.88 per kilo in October vis-à-vis Rs. 408.17 in 2012, reflecting a Rs. 86.71 increase, Ceylon Tea Brokers Plc said. “This is the highest-ever monthly auction average recorded at the Colombo Tea Auction,” Ceylon Tea Brokers said, adding that the previous highest average was in September 2013, which recorded Rs. 475.83. “Even in US$ terms the growth is evident YOY. October 2013 average of US$ 3.78 shows a growth of US$ 0.66 vis-à-vis US$ 3.12 of 2012,” the broking firm said.

Another significant feature was the Low Grown average for the month of October 2013 which recorded Rs. 530.51 is also the highest on record. Furthermore, for the month of October 2013 Low Grown average of Rs. 530.51 shows a growth of Rs. 118.83 vis-à-vis Rs. 411.68 in 2012. The Low Grown auction average for the sale No. 43 of 29/30 October 2013 recorded Rs. 559.38, which was the highest-ever Low Grown weekly average. High Growns recorded Rs.435.03 for the month of October 2013 as against Rs. 420.35 in 2012 (+Rs. 14.68). Medium Growns stood at Rs. 430.50 for October 2013 vis-à-vis Rs. 372.42 in 2012 (+Rs. 58.08). Asia Siyaka said October 2013 reached a highest-ever Rs. 494.88 per kg, improving the previous month’s total average of Rs. 475.83. “Depreciation of the rupee did play its part, but in US Dollars too the figure is also the highest-ever,” it said. The national average converts to $ 3.82, beating the previous record of $ 3.78 set in 2009. In that year there was a global shortage of supply, caused by poor growing conditions in the southern hemisphere. In Sri Lanka too production was sharply lower. Asia said this year’s October national average was boosted by exceptional prices paid for Low Grown teas, which sold at Rs. 530.51 per kg. “This is the first time teas from any elevation had sold at an average price in excess of Rs. 500 per kg,” it added. Previous record was Rs. 494.96 set in September 2013. The market for High Growns peeked at a highest ever Rs. 451.43 in September this year. By October prices have declined but the average was yet at a relatively high Rs. 435.03. “Unfortunately prices realised from this elevation in many instances did not match the sharp rise in cost of production resulting from loss of crop due to adverse weather,” Asia said. Mid Growns teas were sold at a highest-ever Rs. 430.50 per kg. Orthodox leafy teas from this elevation benefited the strong market for Low Growns. In US Dollars the High Grown September Rupee average converts to $ 3.45 per kg, well below the record levels set during September to November 2009 when $ 3.55 was realised. Similarly Mediums realised a highest-ever $ 3.42 in September of that year.