Offering drops to 5 MnKgs at Colombo Tea Auction this week

• Offering met with lesser demand
• Brokers say dip in prices would be due to  price correction owing to overall product quality and less interest from some key importers

The Colombo Tea Auction this week saw only five MnKgs come under the hammer; it saw less demand and a firm to easier trend for most teas on offer, Forbes and Walker Tea Brokers said.

The Ex-Estate offerings, which totalled 0.75 MnKg, saw a slight decline in quality over the previous week.
The better Western BOP/BOPFs sold at firm to dearer rates, whilst the others declined by up to Rs.100 per kg and more.
“Perhaps an unanticipated decline considering the lower volumes in the sales ahead,” the tea broker said in its
latest tea report. 

“In retrospect, the decline in prices would be a price correction, owing to the overall product quality and less interest from some key importers, due to the arrival of cargo at destinations ahead of schedule,” it added.The High and Medium CTC teas in the higher price bracket witnessed a similar trend, whilst the teas at the lower end were somewhat maintained, subject to quality. 

The limited availability of the Low Growns sold well.
Improved activity from the local trade and perhaps South Africa helped to stabilise the prices to some extent.  
The Off Grade varieties followed a similar trend in price movement as of the Ex-Estate teas, whilst the primary Dust varieties, with the exception of the CTC types, witnessed a firm to irregular trend.    

The Low Growns comprised 2.2 MnKgs. The Leafy and Semi Leafy catalogues met with fair demand. However, the Small Leaf and Premium catalogues continued to decline. The shippers to Iran were very selective, whilst the shippers to Turkey and Russia were fairly active. 

In the Leafy and Semi Leafy catalogues, the Select Best OP1/BOP1s were maintained, whilst the balance was easier. The well-made OP/OPAs were firm, whilst the others were marginally easier. The PEK/PEK1s in general were firm, whilst the bolder varieties declined marginally.  

In the Tippy catalogues, the Select Best FBOPs were firm on special inquiry, whilst the others declined. However, the teas at the bottom sold around last levels. The FF1s in general were easier, whilst the teas at the bottom were firm.

In the Premium catalogues, the very Tippy teas together with the Best and Below Best varieties declined, whilst the teas at the bottom were firm.