Tea sees improved demand from core markets

Monday, 14 March 2016 00:00 - - {{hitsCtrl.values.hits}}

This week’s auction saw improved demand from key markets for Sri Lankan tea, including CIS countries including Russia and the Middle East, along with a marginal increase of products on offer, Forbes and Walker Tea Brokers said.

Auction offerings showed a marginal increase totaling 6.3 M/kgs.

“In the Tippy catalogue better FBOP/FF1s together with the cleaner secondaries were firm to dearer.

Others were irregular following quality. At the lower end however prices were fully firm to dearer. In the Premium catalogue better made teas were fully firm to dearer. Others were irregular. Shippers to Dubai, Turkey, CIS, Iraq, Kuwait and Saudi Arabia were active this week,” the report said.

Ex-Estate offerings comprised of 1.0 M/kgs. Overall quality of teas from the Western and Nuwara Eliya Planting districts were fairly useful, teas from the Udapussellawa region showed a general improvement in dry leaf appearance whilst Uvas were mostly similar to last.

In Best Western BOPs, select invoices gained sharply following airmail inquiry whilst the others were irregular following quality. Corresponding BOPFs had a few select invoices that gained following airmail inquiry whilst the others were irregular and often lower. In the below best category BOPs gained up to Rs. 20 per kg whilst plainer sorts were firm and dearer to a lesser extent. Corresponding BOPFs on average gained Rs. 10 per kg. Nuwara Eliya BOP/BOPFs were irregular following quality.

Udapussellawa BOP/BOPFs gained Rs. 10-20 per kg. Uva BOPs gained Rs. 10 per kg whilst the corresponding BOPFs sold around last week’s levels. CTC BP1s were up to Rs. 20 per kg dearer whilst the corresponding PF1s showed no significant change in its overall price structure.

Liquoring leafy teas did not encounter the same intensity of demand although continued to sell at fairly attractive prices ranging from Rs. 450-1,000 per kg.

“There was improved interest from shippers to CIS. UK, Japan, the Continent and South Africa were selective. There was fair interest from Hong Kong and China,” it added.

Low Growns totalled 3M/kgs in the Leafy/Tippy catalogues this week. There was fair demand. In the Leafy catalogue BOP1/OP1s were irregularly dearer particularly for the improved below best sorts. Select best OP/OPAs were barely steady whilst others were firm to dearer. PEK/PEK1s too were mostly firm with the teas at the lower end gaining Rs. 5-10 per kg and more.