Tea auctions this week

Friday, 20 May 2016 00:00 - - {{hitsCtrl.values.hits}}

By John Keells Plc

The larger weight of 1.2m kgs of Ex-Estate teas that came under the hammer, met with less demand and consequently prices declined substantially for the BOPFs as the sale progressed. The BOPs too declined but to a lesser extent. A few bright Nuwara Eliya BOP/BOPFs were firm, whilst the plainer BOPs shed. A few coloury well-made UVA BOP/BOPFs maintained, with most others declining. The select best Low Grown PF1s advanced with others declining. High and Medium grown PF1s declined. Low Grown BP1s too shed whilst the High and Medium sorts too followed a similar trend.

An irregularly lower market could be expected to prevail at next week’s Ex-Estate’s sale comprising of 1.2m kgs as quality is relatively lower compared to what we have seen in recent auctions.

There was good demand for the 3.3 m kgs of Low Growns that were on offer at this week’s tea auction. BOP1s moved up Rs.10/- to Rs.20/-, whilst the OP1s shed Rs.20/-. OPs maintained las levels. OPAs tended a little irregular. Pekoes were firm, however shotty Pekoes declined Rs.10/- to Rs.15/-. In the Small Leaf category, BOPs maintained last levels. There was strong demand for the FBOPs which advanced Rs.10/- to Rs.20/-. FBOPF1s however declined Rs.10/- to Rs.15/-. Select best Premium Tippy varieties were firm, however others declined sharply from last levels.

There was good demand from Russia, Iran, Saudi Arabia and Iraqi buyers.

Deplorable weather hits plantations

The climate change we are witnessing today, has resulted in increased frequency of extreme weather. The unexpected very heavy rains and gale winds following the extended hot and dry spell experienced has caused extensive destruction to property, has affected people in several districts of the Island. All plantation regions experienced deplorable weather resulting in poor worker out turns and unfavorable conditions to produce teas with good appearance, colour and strength. The recent invoices seen have shown a decline in quality.