Good demand at irregular rates

Thursday, 10 February 2011 00:01 - - {{hitsCtrl.values.hits}}

Total auction offerings declined to 6.1 m/kgs this week. There was good demand, once again at irregular rates. Ex-estate offerings recorded a sharp decline and totalled 0.8 m/kgs.

Overall quality of teas from the Western and Nuwara Eliya planting districts were selectively improved whilst teas from the other High and Mid grown regions showed no significant change. Notwithstanding a better selection of teas on offer and much smaller volumes, it was disappointing to witness an easier trend in prices particularly in respect of teas from the Western planting districts. On average Below Best and Plainer BOPs lost Rs.5-10 per kg, although a few select BOPF invoices in the Best and Below best category appreciated following special inquiry. The price structure for Nuwara Eliyas showed a marginal improvement with a few select teas appreciating Rs.10-20 per kg. CTC varieties witnessed mostly a firm market with a few Low grown teas gaining Rs.10-20 per kg. Off grade and Dusts which recorded a fairly sharp decline last week bounced back with an average gain of Rs.5-10 per kg for most grades of tea. At the next week’s auction overall quality of most Western High growns have shown a fair improvement with a selection of teas with some seasonal quality. At this week’s sale Low growns totalled 3.3 m/kgs in the Leafy/Tippy catalogues. In the Leafy catalogues OP1s met with good demand and were firm to marginally dearer. BOP1s were however irregular with prices declining Rs.10-20 per kg particularly for the select best. OP/OPAs sold well and were fully firm to dearer whilst Pekoes too followed a similar trend. In the Tippy catalogues better FBOP/FF1s were firm to marginally easier. Cleaner secondaries too followed a similar trend. Better made Tippy invoices sold well others were irregular and lower following quality. CIS, Turkey, Syria, Dubai, Iran, Saudi Arabia, Kuwait and Iraq were active. (Source: Forbes and Walker Tea Brokers) Substantially lower quantities This week’s auction consisting 6.1 m kgs, substantially lower figure than the previous week’s offerings. Ex estate offering witnessed a sharp decline totalling 0.8 m kgs, met with less demand except for Uva/Udapussellawa BOPS which sold Rs.5 – 10 per kg dearer, all others lost Rs.5 -10 per kg and at times more. BOPFs followed a similar trend, western BOPFs sold Rs.5 – 10 per kg lower allround. However, Nuwara Eliyas were irregular and tended dearer. Uva/Udapussellawas lost Rs.5 – 10 per kg. CTC PF1s sold Rs.5 – 10 per kg dearer overall however, BP1s sold lower to last. Low Growns comprising approximately 3.2 m kgs met with good demand. The leafy catalogue continued to attract good demand. However, the better BOP1s lost the bullish trend losing Rs. 50 – 60 per kg and at times more where the top end sold between Rs.610 – 650 levels. Better OP1s sold selectively dearer. The below best Pekoes gained substantially Rs.10 -1 5 per kg on average. OPs too followed a similar trend gaining Rs. 5 – 10 per kg and at times more. In the small leaf tippy catalogue, select best FBOPs appreciated Rs.20 per kg and more. Cleaner types sold Rs.5 per kg dearer. Few select best FFs with a good show of tip maintained others sold irregularly lower. Select best FF1s were firm to Rs.10 per kg dearer. Cleaner below best sorts appreciated. (Source: Ceylon Tea Brokers)