Tea auction buoyant amid cumulative production records decrease in first 7 months

Colombo Tea Auction saw improved demand this week with Low Grown varieties selling well in the backdrop of dipped production levels from January to July this year.

Cumulative production of tea from January 2020-July 2020 totalled 156.3 M/kgs, recording a decrease of 28.4 M/kgs vis-à-vis 184.8 M/kgs of January-July 2019, Forbes and Walker Tea Brokers’ report on August 26 showed.

On a cumulative basis, all elevations showed a decrease year-on-year with Low Growns in particular showing a fairly significant variance, the report said.

Meanwhile, a total of 6.2 M/Kgs were on offer at the auction this week, recording a decline from the previous week’s 6.95 M/Kgs, while there was good demand.

Ex-Estate offerings comprised 0.86 M/Kgs, once again recording a decline from the previous week’s 0.95 M/Kgs. There was improved demand, particularly as the sale progressed. Best Western BOP’s – high priced tea of last week were up to Rs. 20 per kg lower on average, whilst the others gained Rs. 10-20 per kg selectively following special inquiry.

Corresponding BOPF’s appreciated up to Rs. 20 per kg. In the Below Best category, brighter BOP’s gained Rs. 10-20 per kg, whilst the others sold around last week’s levels. Corresponding BOPF’s appreciated Rs. 20 per kg. Plainer sorts continued to sell at last week’s levels. Nuwara Eliyas – with most estates in the region adopting a large leaf manufacturing process, there was hardly any offerings of BOP/BOPF grades this week. Uda Pussellawas sold around last. Uvas – the limited availability of seasonal/brighter teas were substantially dearer. Other BOP/BOPF’s were firm, with the latter appreciating Rs. 10 per kg on selected lots.

High and Medium Grown CTC BP1’s witnessed a correction in prices after several weeks of price advances. PF1’s were generally firm though irregular following quality. Corresponding Low Grown varieties continued to sell well.

Low Grown Leafy/Semi Leafy and Tippy’s comprised of approximately 2.7 M/Kgs. There was fair demand. BOP1’s together with OP1’s were fully firm to dearer barring a selection of teas that did not maintain quality which declined in value. OP/OPA’s too were generally firm to dearer.

Here again, a selection of teas that did not maintain quality, particularly in the Below Best category, were irregular and lower. PEK/PEK1’s met with good demand this week and prices were fully firm to dearer. In the Tippy catalogues, select FBOP/FF1’s were easier Rs. 10-20 per kg and more, whilst Best and Below Best varieties too declined further. A selection of cleaner secondaries were, however, fully firm to dearer. Others and the teas at the lower end were easier. In the Premium catalogues, a selection of well-made teas maintained, whilst the others were lower to last, the report said.