5.2 MnKgs come under hammer this week at Colombo Tea Auction

• Weakening of rupee further boosts tea prices

This week’s tea auction saw a total of 5.2 MnKgs come under the hammer, barely maintaining the previous week’s volumes.

The weakening of the Sri Lankan rupee against the US dollar continued to boost the rupee tea prices at the Colombo Auction quite significantly this week as it had in the last.

Low Grown/Large Leaf teas continued to appreciate by a greater margin, with many invoices realising all-time record prices.

The tea auction report by Forbes and Walker Tea Brokers highlighted that the High and Medium Small Leaf teas too appreciated by Rs.50 per kg and more, though yet not in keeping with the Large Leaf sector gains and perhaps the depreciation of the Sri Lankan rupee.

Ex-Estate offerings remained fairly similar to last and totalled 0.83 M/Kgs, whilst the quality of teas on offer were mostly similar to last.

In the Best Western category, select high priced BOPs were irregular, whilst the others gained substantially by Rs.50 per kg and more. Corresponding BOPFs (Select Best) were irregular following quality, whilst the others gained Rs.50 per kg and more. In the Below Best category, BOPs in the higher price bracket were firm and Rs.10-20 per kg dearer, whilst the others together with the teas at the lower end of the market were substantially dearer. Corresponding BOPFs in the Below Best and Plainer categories appreciated Rs.50-70 per kg and more towards the close. Nuwara Eliya BOPs gained Rs.40-50 per kg, whilst the corresponding BOPFs gained by an average Rs.50 per kg. Uda Pussellawa BOPs were Rs.30-40 per kg dearer, whilst the corresponding BOPFs gained by up to Rs.40 per kg. Uva – BOPs gained substantially, particularly the coloury types, whilst the corresponding BOPFs gained by Rs.40-50 per kg.

High and Medium Grown CTC teas gained by Rs.30-50 per kg, in keeping with the Orthodox types, whilst the Low Grown varieties too were up to Rs.50 per kg dearer.

Off Grades and Dusts gained by Rs.50-80 per kg and Rs.30-50 per kg, respectively.  

Low Growns comprised of 2.1 M/Kgs in the Leafy/Semi Leafy and Tippy catalogues. There was strong demand/improved activity.

“The substantial gain in prices recorded could be attributed to a combination of improved activity from Turkey and Iran combined with the shortfall in volumes and the devaluation of the Sri Lankan rupee from a rupee tea price perspective,” Forbes and Walker Tea Brokers said.

In the Leafy and Semi Leafy catalogues, select Best BOP1/OP1s were fully firm, whilst the clean/improved Below Best varieties commenced Rs.75-100 per kg dearer and gained further towards the close of the sale. Others and poorer sorts too followed a similar trend. 

In the Tippy catalogues, well-made FBOP/FF1s together with the cleaner Below Best were substantially dearer, whilst the balance too appreciated by Rs.50 per kg and more. 

In the Premium catalogues, Very Tippy teas together with the Best and cleaner Below Best were substantially dearer, whilst the balance too were dearer by Rs.50-70 per kg and more.