Colombo Tea Auction sees improved demand for better teas after Iran barter agreement

Following improved activity from the shippers to Iran following the ‘Tea for Oil’ agreement, this week’s Colombo Tea Auction saw increased demand for the better teas in the High and Mid Grown sector and Low Grown Small Leaf/Tippy teas.

However, the total auction offerings were marginally lower and totalled 5.9 million kilogrammes.

The Ex-Estate offerings totalled 0.84 million kilogrammes. There was improved demand, particularly for the
better teas.The Best Western BOPs appreciated up to Rs.200 per kilogramme, whilst the others were firm and up to Rs.100 per kilogramme dearer. 

The corresponding BOPFs gained Rs.100 per kilogramme and more following special inquiry. In the Below Best and Plainer categories, the clean leaf BOPs gained Rs.20-30 per kilogramme, whilst the others were firm and lower by a similar margin for the poor leaf types. 

The corresponding BOPFs followed a similar trend, with the clean leaf teas appreciating by up to Rs.50 per kilogramme and more for select invoices, whilst the others were barely steady. The Nuwara Eliya BOPs were irregular, whilst the corresponding BOPFs had hardly any invoices on offer. The Uda Pussellawa BOP/BOPFs – Clean leaf types, were up to Rs.50 per kilogramme dearer, whilst the others were Rs.20-30 per kilogramme easier. Improved activity for the Uva seasonal teas and BOPs ranged between Rs.1,300-3,100 per kilogramme, whilst the corresponding BOPFs ranged between Rs.1,000-1,800 per kilogramme. The other Uva BOP/BOPFs gained up to Rs.100 per kilogramme.  

The High and Mid Grown CTC teas – BP1s, had hardly any offerings and tended easier. The PF1s – clean leaf bright liquoring teas, were firm and tended dearer, whilst the others were irregular and mostly easier. The corresponding Low Grown BP1s met with less demand and were irregularly easier, whilst the PF1s commenced firm and appreciated up to Rs.100 per kilogramme as the sale progressed.

The Low Growns comprised of 2.4 million kilogrammes. The Leafy, Semi-Leafy and Tippy teas met with good demand. Improved activity from shippers to Iran following the ‘Tea for Oil Agreement’ and consequently, Small Leaf categories gained substantially. 

In the Leafy catalogues, the well-made OP1s/BOP1s were firm to dearer, whilst the balance appreciated. The OPs, in general, were dearer. The well-made OPAs were easier, whilst the balance gained. The PEKs – Select Best and Best together with the clean leaf Below Best, gained sharply in value, whilst the balance too gained to a lesser extent. The Select Best PEK1s were easier, whilst the balance sold around last week’s levels. 

In the Tippy catalogues, the Select Best FBOPs were firm. The Best and Below Best appreciated substantially, whilst the balance gained to a lesser extent. The well-made FF1s together with the clean leaf Below Best gained considerably, whilst the balance was dearer to alesser extent. 

In the Premium catalogues, the very Tippy teas met with improved demand and were dearer. The Best and Below Best together with the cleaner teas at the bottom appreciated, whilst the balance was firm.