Tea auctions this week

By John Keells Plc

Examining the current global crop situation, most black tea-producing countries have recorded substantial gains. 

A surplus of just over 100 M Kg over last year’s to-date crop has been recorded. However, crop harvest from the Sri Lankan perspective is yet to show any significant improvement and continues well below last year’s levels. The plantations in all elevations are reportedly incurring heavy financial losses due to the exorbitant cost of production. 

The impact of the lower quantities in the Ex-Estate catalogue is being felt. Despite the shortfall, there has not been the anticipated upward movement in price structure. Meanwhile, there are some improved teas from most gardens in all elevations. The Uva Quality season this year was to some extent below par with only a few plantations recording attractive prices. Overcast weather conditions have been experienced in most planting districts. 

The 0.9 M kg of Ex-Estate teas on offer this week met with lower demand. There was active bidding for the clean well-made BOPs while the BOPFs were mostly easier. Others were irregular following quality. The brighter Nuwara Eliya’s with some character attracted some useful bids. Interest in the Uva seasonal teas was somewhat sluggish with only a few lines demanding tall prices. The well-made Low Grown CTC teas met with good demand while the High and Medium Pf1s were easier.           

There was good demand for the 2.5 M kg of Low Growns that were on offer. The Select Best BOP1s were slightly lower to last, however the balance were dearer. OP1s advanced Rs. 10. OPs appreciated from Rs. 10 to Rs. 15. OPAs declined on last levels. Pekoes were firm, while the Pekoe1s advanced from Rs. 10 to Rs. 15.  BOP/BOP.SPs appreciated from Rs. 5 to Rs. 10. FBOPs were slightly easier to last. FBOPF1s maintained last levels, Best Tippy varieties were firm and the rest on offer were slightly lower to last.

There was good demand from Russia, Iranian, Syrian, Turkish and Saudi buyers.