Colombo tea auction quantities slip further, prices surge

This week quantities at the Colombo Tea auction was 5.2 million kg, significantly lower compared to the regular offerings of around 6 million kg to 6.5 million kg during this time of the year, Forbes & Walker report stated adding that there was a good demand.

Ex-Estate offerings comprising 0.5 million kg met with excellent demand in the backdrop of its very limited availability.

Best Western BOP’s gained up to Rs.200 per kg, while the corresponding BOPF’s which were initially Rs.50-100 per kg dearer appreciated further recording price gains of up to Rs.200 per kg. BOP’s in the Below  Best and Plainer categories were irregular and Rs.50-70 per kg dearer in most instances, while the corresponding BOPFs which were initially Rs.50 per kg dearer gained further as the sale progressed and appreciated Rs.100 per kg and more. Nuwara Eliya – BOPs mostly sold around last, while the corresponding BOPFs were up to Rs.100 per kg dearer.

High and Medium Grown CTC – BP1s were irregular. PF1s gained up to Rs.200 per kg in most instances, while a few select Mid Grown types appreciated even further. Low Grown varieties – BP1s gained Rs.100 per kg and more for a few select invoices, while the FP1s continued to sell at attractive price levels with most teas selling between rs.2500-3200 per kg.
Forbes & Walkers stated that the significant upward movement in prices while encouraging results in a very minimal price variance between the better teas and their poorer counterparts. This trend would be concerning for producers of good quality teas though unavoidable in circumstances of extremely low availability. (SD)