Tea auctions this week

Friday, 8 February 2013 01:12 - - {{hitsCtrl.values.hits}}

A total of 6.9M/kgs came under the hammer this week. There was fair general demand.

Ex-Estate offerings continued to decline further this week and totalled 1.2M/kgs. Here again, there was fair demand with prices often declining following quality.

A few select bright Western BOPs appreciated sharply following special enquiry whilst the others and the corresponding BOPFs declined Rs. 10-20 per kg and more following quality – BOPs in the below best and plainer categories having declined quite substantially over the past couple of weeks, barely maintained its previous week’s levels. The corresponding BOPF’s in the below best category declined Rs. 5-10 whilst plainer sorts were barely maintained. Nuwara-Eliyas continued to witness poor demand in the backdrop of uninteresting quality. Teas from the Uva/Udapussellawa regions witnessed a firm to marginally dearer trend. CTC teas in the High and Medium categories were barely maintained around last week’s closing levels whilst Low Grown types declined Rs. 10-20. The limited availability of liquoring leafy teas met with excellent demand and sold well.

This week’s lower trend could mainly be attributed to the relatively uninteresting quality. However, the firm trend in particular for teas at the bottom end of the market is encouraging and would augur well for demand for teas during the fourth coming sales.

Next week’s Ex-Estate offerings show a general improvement in product quality particularly for teas from the Western planting districts.

Low Growns comprised of approximately 3.2M/kgs in the Leafy/Tippy catalogue this week. In the Tippy catalogue, better FBOPs were generally firm, whilst FF1s were barely steady. Tippy invoices too were mostly irregular and lower. At the lower end however, there was good demand, particularly for the cleaner teas. In the Leafy catalogue, better BOP1/OP1s sold at fully firm to dearer rates. Others too were firm, whilst OP/OPAs were irregular, barring a limited selection of clean below best which maintained. PEKs too commenced Rs. 5-10 per kg and more lower, but firmed up towards the close. Here again, the teas at the lower end were fully firm. Shippers to CIS, Turkey, Dubai, Iraq, Kuwait and Saudi Arabia were active this week. (Courtesy: Forbes and Walker Tea Brokers)