Volumes continue to fall at Colombo tea auction

Ceylon Tea auction volumes this week were barely maintained around 5 million kg, the Forbes and Walker report stated.

There had been excellent demand all-around with prices often strengthening substantially as the sale progressed. 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, it was noted.

Buyers are said to be pushing for volume in the backdrop of limited availability, it was noted.

Ex-Estate offerings too were barely maintained around 0.7 million kg. Here again, in the Best Western category, BOP/BOPF’s 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 BOPF’s 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/BOPF’s respectively on opening levels.

High and Medium Grown CTC BP1s recorded price gains of Rs.50-60 per kg, while the corresponding Low Gown varieties gained up to Rs.100 per kg.

Off Grades and Dust too recorded similar price gains with the feature being the enhancement in prices towards the latter part of the sale. Improved activity was seen from shippers to CIS, China and Japan. (SD)