4.8 MnKgs under hammer at this week’s tea auction

A total of 4.8 MnKgs came under the hammer at this week’s Colombo Tea Auction, a dip of 0.4 MnKgs when compared with last week’s offering.

According to Forbes and Walker Tea Brokers, there was excellent demand all-round and often substantial price gains. 

“A combination of lower volumes, the weakening Sri Lankan rupee and urgent shipments perhaps triggered the aggressive market,” the tea broking firm said in its latest tea market report.

It added that the current prices in comparison to the corresponding period in 2021 would record a significant gain in Sri Lankan rupee terms and a marginal appreciation in US dollar terms. 

Estate offerings totalled 0.8 M/Kgs, marginally lower on last week’s 0.83 M/Kgs. Here again there was excellent demand with prices often strengthening as the sale progressed. 

Amidst the remunerative rupee tea prices, a concerning factor would be the lack of a price parity between the better teas of the poorer counterparts. 

Perhaps a phenomenon, which has emerged on account of the limited volumes on offer and buyers’ commitments towards urgent shipping requirements, Forbes and Walker Tea Brokers said.

Best Western BOPs, on average, gained Rs.40-80 per kg, whilst the corresponding BOPFs recorded a Rs.30-40 per kg appreciation for the selected Best. In the Below Best category, BOPs gained Rs.70-100 per kg, whilst the corresponding BOPFs appreciated up to Rs.100 per kg. Plainer sorts gained further, particularly towards the close.

Nuwara Eliyas were irregular following quality. Uva/Uda Pussellawas too appreciated in a similar manner and were often up to Rs.100 per kg dearer.   

CTC teas too followed a similar trend.  
Low Growns comprised 2.0 M/Kgs in the Leafy/Semi Leafy and Tippy catalogues. The market continued to appreciate further for well-made teas, whilst the cleaner secondaries and poorer sorts gained substantially. Shippers to Iran, Turkey and Russia operated aggressively.  

In the Leafy and Semi Leafy catalogues, select Best BOP1s gained substantially, whilst all others gained by Rs.75-100 per kg and more. Select Best OP1s were fully firm, whilst the Below Best varieties gained by Rs.150-200 per kg and more following quality.  Well-made OP/OPAs in general gained by Rs.200-250 per kg, whilst the others and poorer sorts gained further. Select Best PEK/PEK1s gained substantially. Below Best varieties too gained to a lesser extent.

In the Tippy catalogue, well-made FBOP/FF1s together with the cleaner Below Best gained in value substantially, whilst the others too appreciated by Rs.50-70 per kg and more. 

Lastly, in the Premium catalogues, very Tippy teas together with the Best appreciated substantially, whilst the balance too gained in value to a lesser extent.