Tea auction offerings decline further this week

Thursday, 3 August 2017 00:39 - - {{hitsCtrl.values.hits}}

By Forbes

and Walker Tea Brokers

Auction offerings declined further and totalled 6.3M/kg vis-à-vis the 6.7M/kg on offer the previous week.

Good teas continued to sell well while the poorer sorts declined in value. Consequently, the parity between the better teas and the poorer varieties widened thus compensating the manufacturers of good quality teas.

Ex-Estate offerings were marginally lower to last and totalled 0.7M/kg. There was less demand and often selective following quality. Best Western BOP/BOPF were mostly firm whilst the others were irregular and easier following quality. In the Below Best category select improved invoices appreciated in value whilst the others were barely steady. Corresponding BOPF was irregular. Plainer BOP’s were barely steady whilst the corresponding BOPF lost up to Rs. 20 per kg. Nuwara Eliya – BOP’s were mostly firm whilst the BOPF declined up to Rs. 30 per kg. Udapussellawa BOP’s were irregular whilst BOPF declined up to Rs. 10 per kg and more following quality. Uva BOP’s gained up to Rs. 20 per kg whilst corresponding BOPF declined by a similar margin. CTC teas were firm to dearer all-round. Bearish sentiment continued for the liquoring leafy teas. Less interest from China and CIS, Japan, the UK and the continent continued to bid selectively following quality. Low Growns totalling approximately 3M/kg came up for sale in the Leafy/ Tippy catalogues this week. There was good demand for the well-made clean leaf teas. In the Leafy catalogue better BOP1/OP1’s were fully firm to dearer. With others, particularly where quality was not maintained, prices were irregular and often lower. OP/OPA’s too followed a similar trend with the poor leaf teas at the lower end being Rs. 10-15 per kg lower at times. PEK/PEK1’s were mostly firm with a selection of bolder PEK’s gaining Rs. 10-15 per kg. In the Tippy catalogue better FBOP/FF1’s were mostly firm whilst their cleaner secondaries too were fully firm to dearer. At the low end prices were easier particularly where leaf style was not maintained.

In the Premium catalogue too there was good demand and prices were firm in general with the exception of a selection of poor leaf teas at the lower end that declined. At this week’s sale shippers to CIS, Turkey, Kuwait, Dubai and Saudi Arabia were active.