Tea auction sees better demand

Friday, 11 October 2019 00:01 - - {{hitsCtrl.values.hits}}

But lower volumes and quality issues result in price fluctuations

Tea auctions this week saw better demand despite a lower volume on offer but the quality of offerings were irregular, resulting in significant price fluctuations, tea brokers said in the weekly report.

Forbes and Walker, releasing its weekly summary, said the auction had on offer 5.9 M/kg in relation to 6.4 M/kg on offer during the previous week and that there was better demand.

“Ex-Estate offerings comprised 0.8 M/Kg. Quality of offerings were irregular and consequently, significant price fluctuations between consecutive invoices continued to be a common feature,” the report said.

Overall, demand for BOPs continued to be selective, with only teas in the Best category achieving a satisfactory price level. BOPF, in general, met with better demand and prices moved up all-round, with select invoices appreciating following special inquiry.

Demand was sluggish for CTCs in the High and Mid Grown category, while their Low Grown counterparts sold at attractive levels, particularly for the PF1 grade which ranged from Rs. 600-850 per kg.

“Low Growns comprised 2.6M/kgs in the Leafy/Tippy catalogues this week. There was good demand. In the Leafy catalogue, better BOP1/OP1s were fully firm to dearer while the others too were mostly firm barring the stalky types which were irregular and lower.”

It is also noteworthy that a line of Mulatiyana Hills OP1 realised Rs. 1,700 per kg, equalising the All-time Record Price for an OP1 grade. PEK/PEK1s met with excellent demand and prices gained Rs. 10-20 per kg and substantially more at times.

Here again, a line of Adams View PEK realised Rs. 1,450 per kg, thus establishing a new All-time Record Price. Better OP/OPAs were fully firm. A range of improved Below Best sorts gained Rs. 10-20 per kg. The balance sold around last levels.

In the Tippy catalogue too, Better FBOP/FF1s though irregular, were firm whilst cleaner secondaries were fully firm to dearer. At the lower end, prices were irregular and lower for the poorer sorts. In the Premium catalogue too, Select Best together with a range of improved types were fully firm to dearer whilst the others were irregular following quality.

There was good demand from shippers to CIS, Turkey, Saudi Arabia, Iraq and Dubai this week.