High volume, low quality, currency instability contribute to declining market at this week’s tea auction

27 May 2023 04:30 am Views - 233

The offerings at the Colombo Tea Auction totalled 7.1 MnKgs, similar to that of last week and were met with fair demand at easier rates. 

“Higher volumes combined with lower quality and the instability in the currency would be the contributing factors for the declining market,” said Forbes and Walker Tea Brokers in its latest tea market report.

The Ex-Estate offerings totalled 1.0 MnKgs. The overall quality from the Western and Nuwara Eliya planting districts was mostly lower to last, whilst the teas from the Uva/Uda Pussellawa regions were irregular and here again, were often lower to last. 

The Best Western BOP/BOPFs – improved activity for select invoices, which were firm and often appreciated on last week’s levels, whilst the others declined by an average of Rs.50 per kg. In the Below Best category, the BOPs declined up to Rs.100 per kg, whilst the corresponding BOPFs on average eased by Rs.50-70 per kg. The Plainer BOPs eased by Rs.100 per kg and more, whilst the corresponding BOPFs declined Rs.50-70 per kg and often more towards the close. 

The Nuwara Eliyas were easier and often difficult of sale. The Uda Pussellawa BOPs were up to Rs.100 per kg easier. The corresponding BOPFs – better sorts declined up to Rs.200 per kg, whilst the others were up to Rs.50 per kg easier. The Uva – few select BOPs were barely steady, whilst a majority declined Rs.50-70 per kg. The corresponding BOPFs – select invoices declined Rs.20-30 per kg, whilst the others declined by Rs.50 per kg and more particularly by the close. 

The High and Medium Grown CTC teas – BP1s were irregular and often easier, whilst the PF1s declined Rs.20-40 per kg and more by the close. The Low Grown varieties sold around last. 

The Low Growns comprised of 2.9 MnKgs. The Leafy, Semi Leafy and Tippy catalogues met with lower demand.

In the Leafy and Semi Leafy catalogues, the OP1s in general were easier. A selection of BOP1s was firm to selectively dearer on special inquiry, whilst the balance declined. The well-made OP/OPAs together with the Below Best varieties declined, whilst the teas at the bottom sold around last levels. A few select Best PEK/PEK1s maintained, whilst all others declined.

In the Tippy catalogues, the select Best FBOPs were firm to marginally easier, whilst the balance declined. The FF1s too, in general, were easier. 

In the Premium catalogues, the very Tippy teas together with the smaller varieties declined sharply and at times were unsellable, due to a lack of sufficient bids. However, a few leafier varieties sold around last levels on special inquiry, whilst the balance was lower.