COLOMBO TEA AUCTION 28/04/2015

C O M M E N T S

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This week a total of 7.4M/Kgs were on offer. There was fair demand. 

Ex-Estate offerings were similar to last week and totalled a 1.3M/Kgs. Overall quality of teas on offer showed no significant change and a larger weight of the offerings comprised of “fair average quality” teas. Consequently, Best Western BOP/BOPF’s declined by Rs. 10/- per kg. In the below best category a few select brighter teas gained by Rs. 10/- per kg whilst the others together with plainer sorts declined by a similar margin. Corresponding BOPF’s declined Rs. 10-15/- per kg. Nuwara Eliya BOP’s continued to sell well although realized prices of Rs. 20-30/- per kg below last week’s levels. Corresponding BOPF’s – a few select invoices were irregularly dearer following airmail inquiry whilst others declined by Rs. 10/- per kg on average. Udapussellawa BOP’s gained a Rs. 10-20/- per kg whilst the corresponding BOPF’s were irregular following quality. Uva’s – Select high priced BOP’s of last week were substantially lower whilst others generally sold around last week’s levels. Corresponding BOPF’s declined Rs. 10-15/- per kg. CTC teas met with slightly better demand and a few clean leaf coloury teas, particularly in the Medium Grown category gained Rs. 10-20/- per kg. Poorer sorts continued to be difficult of sale.

The feature of the sale was the strong demand for liquoring leafy teas which realized prices ranging from Rs. 500/- to Rs. 1400/- per kg.

Low Growns comprised of approximately 3.3M/kgs in the Leafy/ Tippy catalogues. There was fair general demand. In the Leafy catalogues OP/OPA’s were fully firm to dearer with a range of below best types at times gaining Rs.10-15/- per kg. Better BOP1/OP1’s were irregularly lower. Others however sold around last levels, particularly following quality. PEK/PEK1’s were mostly lower with the exception of a selection of well made PEK1’s that held firm. In the Tippy catalogues FBOP/FF1’s were irregularly lower. A selection of well made Tippy invoices gained on last whilst the balance were mostly lower. Shippers to CIS, Turkey, Dubai, Iraq, Saudi Arabia and Kuwait were active this week.

Sri Lanka Tea Production – March 2015

Tea Production for the month of March 2015 totalled 30.2 M/kgs showing a fairly substantial increase of 4.5M/kgs vis-à-vis 25.7M/kgs of March 2014. When analyzing the production of each elevation Low Growns have shown the highest increase YOY followed by Mediums and High Growns. (As detailed in page no.08)

Cumulative production too for the period January – March 2015 of 79.08M/kgs show a growth of 5.2M/kgs vis-à-vis 73.8M/kgs of January – March 2014. Hereagain Low Growns have shown the biggest growth followed by Medium Growns.

CTC production too of 1.7M/kgs for March 2015 show a marginal increase vis-à-vis 1.6M/kgs of March 2014. Hereagain Low Growns have shown a gain vis-à-vis March 2015 whilst High Growns have remained static. Mediums however show a fairly significant decrease when compared to March 2014. When analyzing January – March CTC cumulative production of 4.8M/kgs, show a decrease of 0.1M/kgs vis-à-vis 4.9M/kgs of January – March 2014. Low Grown production has shown a marginal gain during the period under review whilst Mediums and High Growns show a negative growth.