Colombo Tea Auction sees volumes barely maintained around 5 MnKgs this week

This week’s Colombo Tea Auction saw that the overall volumes were barely maintained around 5.0 MnKgs. However, there was excellent demand all-round with prices often strengthening substantially as the sale progressed.

The latest tea auction report by Forbes and Walker Tea Brokers stated that in almost all categories, teas at the lower end of the market often appreciated by a higher margin. Consequently, there was hardly any price differentiation between the better teas and their poorer counterparts.

“Perhaps a phenomenon where buyers are pursuing volume in the backdrop of limited availability,” Forbes and Walker Tea Brokers said.

Ex-Estate offerings too were barely maintained around 0.7 MnKgs. Here again, in the Best Western category, BOP/BOPFs, which commenced recording price gains of Rs.200-300 per kg and Rs.100-200 per kg, respectively gained further as the sale progressed, with the BOPFs in particular recording substantial price hikes.

Teas in the Below Best and Plainer categories too followed a similar trend and often appreciated Rs.50-100 per kg and Rs.100-200 per kg for BOP/BOPFs, respectively on opening levels.  

High and Medium Grown CTC BP1s recorded price gains of Rs.50-60 per kg, whilst the corresponding Low Grown varieties gained up to Rs.100 per kg. PF1s, which commenced with price appreciations of up to Rs.300 per kg, gained up to Rs.500 per kg by the close.

Off Grades and Dust too recorded similar price gains with the feature being the enhancement in prices towards the latter part of the sale.  

Low Growns comprised of 1.5 MnKgs in the Leafy/Semi Leafy and Tippy catalogues. There was improved demand overall and the market continued to appreciate further. Shippers to Iran, Russia and Turkey operated aggressively.
In the Tippy catalogues, well-made FBOP/FF1s together with the cleaner Below Best gained substantially, whilst the balance too appreciated to a lesser extent.  In the Premium catalogues, very Tippy teas together with the Best continued to attract good demand and were dearer, whilst Below Best and teas at the bottom gained substantially.