Dry weather likely to reduce tea quantities available for auction

Thursday, 17 March 2016 00:00 - - {{hitsCtrl.values.hits}}

Dry weather conditions are likely to hit tea production with quantities available at auction declining over the next few weeks, observed Forbes and Walker Tea Brokers yesterday.

Releasing their weekly tea report the company noted this week’s auction offerings totaled a 6.0M/kgs while low grown teas met with improved demand whilst there was less demand for the high grown teas. Shippers to Turkey, Dubai, Saudi Arabia, Iraq and Syria together with CIS were active this week.

“Dry weather continues to prevail in most planting districts with very high temperatures resulting in poor growth conditions. Consequently, auction quantities in the forthcoming sales are likely to record a fairly significant decline,” it added.

Ex-Estate offerings were similar to last and totalled a 1.0M/kgs. Overall quality of teas from the Western planting districts showed a decline – although there was on offer a fair selection of useful liquoring seasonal teas. A selection of BOPs which attracted airmail inquiry realised some attractive prices whilst the corresponding BOPFs were often neglected.

In the below best category a selection of brighter BOPs gained Rs. 20-40 per kg following airmail inquiry whilst the corresponding BOPFs declined Rs. 10-20 per kg. The encouraging feature was a strong demand for teas at the lower end of the market resulting in BOPs appreciating Rs. 5-10 per kg and the corresponding BOPFs selling around last week’s levels.

Nuwara Eliya BOPs continued to sell well whilst the corresponding BOPFs in comparison were disappointing and sold almost Rs. 100 per kg below. Udapussellawa BOPs were barely steady whilst the corresponding BOPFs declined Rs. 10 per kg.

Uva BOPs lost Rs. 10 per kg whilst the BOPFs lost Rs. 10-20 per kg. CTC BP1s declined up to Rs. 20 per kg whilst the corresponding PF1s were generally firm with the exception of the low grown types which declined by up to Rs. 20 per kg. Liquoring leafy teas continued to meet with reasonably good demand and prices ranged between Rs. 450-1,000 per kg.

Low growns totalled 2.7M/kgs in the Leafy/Tippy catalogues.

In the Leafy catalogue OP1s together with BOP1s gained Rs. 5-10 per kg and more particularly for the clean/improved below best types. Better OP/OPAs too were fully firm whilst the below best sorts gained Rs. 5-10 per kg. At the lower end too prices were fully firm to dearer.

PEKs too were fully firm to dearer whilst better PEK1s were barely steady. Here again the below best together with the lower end PEK1s were dearer. In the Tippy catalogue select best FBOP/FF1s were fully firm to dearer. Others were irregular following quality. At the lower end however prices were fully firm to dearer particularly for the cleaner types. In the Premium catalogue too there was better demand and prices were fully firm to dearer.