Colombo Tea Auction offering this week sees less demand and declining trend in prices

The Colombo Tea Auction this week had an offering of 5.7 million kilogrammes, which was met with less demand and often a declining trend in prices. 
The lower quality combined with less activity from the shippers to Iran and a cautious approach by the buyers, on account of the volatility in the currency, resulted in a bearish market sentiment, Forbes and Walker Tea Brokers said. 
The Ex-Estate offerings totalled 0.9 million kilogrammes, up from the 0.80 million kilogrammes on offer the previous week. The overall quality of teas showed a decline and consequently, a greater availability at the lower end of the market. 
The limited availability of the Best Western BOP/BOPFs witnessed a firm and Rs.50 per kilogramme easier trend in prices. In the Below Best category, the BOP/BOPFs encountered a similar weakening in prices by Rs.50 per kilogramme and more for tea in the higher price bracket. The others together with the teas at the lower end of the market – BOPs, were barely steady, whilst the corresponding BOPFs declined by Rs.20 per kilogramme and more as the sale progressed. 

As highlighted in the previous week’s report as well, the price parity between the Below Best and Plainer categories have narrowed quite considerably, perhaps largely following the decline in quality. The Nuwara Eliya BOPs sold relatively well, whilst the corresponding BOPFs were often unsold, due to a lack of suitable bids. The Uva/Uda Pussellawas – Better BOPs, gained by Rs.50 per kilogramme, whilst the others were barely steady. The corresponding BOPFs too followed a similar trend, with the clean leaf teas selling around last week’s levels and the fibery types declining by Rs.20 per kilogramme and more.     
The High and Medium CTC teas too followed a lower trend for the PF1 grade, which eased by Rs.20-40 per kilogramme and more and here again often following quality. The Low Grown types were generally firm.  
The Low Growns comprised of 2.4 million kilogrammes. All categories met with fair demand, although the teas in the Semi-Leafy and Tippy catalogues witnessed a declining trend in prices.
In the Leafy and Semi-Leafy catalogues, the well-made BOP1s were firm, whilst the balance declined substantially. The high-priced OP1s were firm, whilst the Best and Below Best varieties were easier. The teas at the bottom maintained. The well-made OP/OPAs were firm, whilst the balance was easier. The high-priced PEKs were firm to selectively dearer, whilst the Best and Below Best varieties declined sharply. The teas at the bottom were firm to easier. The PEK1s, in general, were lower.
The Select Best FBOPs were firm to easier, whilst the balance in general declined. However, the bolder varieties declined substantially. The FBOP1s too, in general, were easier.
In the Premium catalogue, the high-priced Tippy teas were firm to easier, whilst the Best together with cleaner Below Best and cleaner teas at the bottom were firm. The balance was easier, following quality. A few select Best FF1s sold around last levels, whilst the balance in general was easier.