Tea auction sees less demand, lower prices

Friday, 31 May 2019 00:08 - - {{hitsCtrl.values.hits}}

Tea auctions this week saw less demand and consequently lower prices with offerings totalling 6.8 M/kgs, Forbes and Walker said in its latest report.

Ex-Estate offerings continued to total around 1 M/kgs. Overall, quality of teas showed no significant change and in this backdrop, it was concerning to note the fairly substantial decline in prices, it said.

Best Western BOPs declined Rs. 20 per kg and more following quality. Corresponding BOPF – a small selection of teas were firm and dearer following special inquiry, whilst the others declined Rs. 20 per kg and more. In the Below Best category, few select BOPs maintained last week’s levels, whilst the majority declined Rs. 30-40 per kg. Corresponding BOPF – brighter clean leaf teas Rs. 20 per kg easier, whilst the others declined up to Rs. 30 per kg and more.

Plainer BOP’s declined Rs. 20 per kg and more for the poor leaf teas, whilst the corresponding BOPF declined up to Rs. 50 per kg.

Tea...

Nuwara Eliya – BOPs irregularly easier, and mostly unsold due to a lack of any suitable bids, whilst the corresponding BOPF declined Rs. 20 per kg on average.

Udapussellawa BOP/BOPF Rs. 10-20 per kg lower. Uva select high priced teas of last week substantially easier. Other BOP/BOPF Rs. 20-30 per kg lower. High and Mid Grown CTCs firm and Rs. 20-30 per kg dearer. Corresponding Low Growns – BP1s gained Rs. 20 per kg and more, whilst the PF1’s continued to sell around last. Better demand for liquoring leafy teas.

Low Growns comprising 3.1 M/kgs in the Leafy/Tippy catalogues met with fair demand, but at lower levels. In the Leafy catalogue, high priced BOP1/OP1s were mostly lower to last. Others, particularly a range of clean Below Best BOP1/OP1s, were firm to selectively dearer.

OP/OPAs too were easier to last with the exception of the clean leaf teas at the bottom end, which held firm. A few select best PEK1s together with a limited selection of shotty PEKs were firm. Others were irregular and lower. In the Tippy catalogue too, FBOPs together with FF1s were easier to last. Here again, a selection of cleaner types at the lower end held firm.

In the Premium catalogue, there was good demand and prices maintained with a few teas being selectively dearer. There was fair demand from shippers to Iraq, Turkey, Dubai and CIS this week.