Improved demand at tea auctions

Friday, 15 September 2017 00:00 - - {{hitsCtrl.values.hits}}

By Forbes and Walker

Tea Brokers

A total of 6.2M/kgs came under the hammer this week. There was improved demand, possibly triggered by limited availability.

Ex-Estate offerings totalled 0.8M/kgs. The significant decline in offerings over the next two weeks would have given much concern to buyers as there was more aggressive bidding, particularly for teas in the below best and plainer categories. Unfortunately, such instances give little encouragement to the manufacture of good quality teas as the price parity between the good teas and their poorer counterparts has narrowed considerably.

Best Western BOP’s were firm and gained up to Rs. 20 per kg and more following a special inquiry whilst the corresponding BOPF gained by Rs. 20 per kg and more as the sale progressed. Other western BOP’s were Rs. 20 per kg dearer whilst the corresponding BOPF gained up to Rs. 30 per kg.

Nuwara Eliya BOP’s appreciated by Rs. 30-40 per kg and more whilst corresponding BOPFs were firm and irregularly dearer, at times substantially, following special inquiry. Uva seasonal teas witnessed a fairly sharp decline in prices, particularly for the BOP grade mainly following lower quality. Other BOP/BOPF’s together with Udapussella often appreciated by Rs. 10-20 per kg. CTC - BP1’s were generally firm whilst the PF1’s appreciated by Rs. 10 per kg and more for select High and Medium grown teas.

There was fair demand from shippers to CIS, China and Japan whilst the UK and the continent continued to be selective.

Low Growns comprised approximately 3.1M/kgs in the Leafy/Tippy catalogues. There was good demand all around. In the Leafy catalogue, BOP1/OP1’s were fully firm to dearer. PEK/PEK1’s too commenced fully firm and gained as the sale progressed.

OP/OPA’s were however irregular and marginally lower. In the Tippy catalogue too better FBOP/FF1’s were fully firm to dearer whilst the cleaner secondaries too gained Rs. 10-15 per kg. At the lower end prices were generally firm with the exception of poor leaf sorts that declined. Prices in the Premium catalogues too were fully firm to dearer. Here again a select range of improved teas gained substantially. At this week’s sale shippers to Turkey, CIS, Dubai, Kuwait, Iraq and Saudi Arabia were active.