COLOMBO TEA AUCTION 06/05/2015

C O M M E N T S

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This week’s Auction quantities recorded a marginal increase and totalled a 7.6M/Kgs. There was fair demand.

Ex-Estate offerings were lower to last and totalled a 1.2M/Kgs.  Once again, the overall quality of teas on offer showed no significant change-with a larger weight of Auction offerings comprising of “fair average quality teas”. Best Western BOP’s declined by Rs. 10-20/- per kg. The corresponding BOPF’s met with slightly better demand and consequently, select clean leaf coloury teas gained by Rs. 10-20/- per kg whilst the others were irregular following quality. Plain clean leaf teas gained Rs. 5-10/- per kg whilst the others were irregular. Nuwara Eliya BOP’s continued to sell well although at irregular rates following quality. The corresponding BOPF’s were too irregular following quality. Uva/Udapussellawa BOP’s declined by Rs. 10-20/- per kg whilst the corresponding BOPF’s were firm and up to Rs. 15/- per kg following quality. Demand for CTC teas continued to be sluggish whilst liquoring leafy teas continued to witness a buoyant market with these teas realizing prices between Rs. 500/- to Rs. 1550/- per kg.

There was slightly better demand from shippers to the CIS, selective interests from UK, the Continent and renewed interests from Hongkong whilst Japan maintained its usual buying.

 Low Growns comprised of 3.5M/kgs in the Leafy/Tippy catalogues this week. There was fair demand at slightly lower levels. In the leafy catalogue BOP1/ OP1’s mostly sold around last levels. OP/OPA’s too were generally firm to irregularly dearer. PEK/PEK1’s however were lower with prices at the lower end declining Rs.10-20/- per kg. In the Tippy catalogues too most FBOP/FF1’s declined Rs.5-10/- per kg. A selection of cleaner sorts at the lower end held firm. Well made tippy invoices too were firm to dearer whilst the others were lower following quality. Shippers to CIS, Turkey, Dubai, Iraq and Saudi Arabia were active this week.

Monthly Auction Averages – April 2015

Auction average for the month of April 2015 totalled Rs.408.35 showing a decrease of Rs.55.71 vis-à-vis Rs.464.06 of April 2014. This also reflects a decline in USD terms when compared to the corresponding period of 2014. High Grown average too of Rs.378.45 has shown a decrease of Rs.41.37 vis-à-vis Rs.419.82 of April 2014. Medium Growns averaged Rs.379.76 for April 2015 showing a decrease of Rs.37.17 vis-à-vis Rs.416.93 of April 2014. Low Growns totalling Rs.426.27 too, show a fairly significant decrease of Rs.65.72 vis-à-vis Rs.491.99 of April 2014. These averages for 2015 show a decrease in USD terms as well when compared to the corresponding period of 2014.

When analyzing the January – April 2015 cumulative average of Rs.416.88, show a decrease of Rs.63.95 vis-à-vis Rs.480.83 of January – April 2014. Here again, High Growns totalling Rs.399.84 show a decrease of Rs.37.30 vis-à-vis Rs.437.14 of 2014 whilst Mediums totalling  Rs.383.85 show a decrease of Rs.44.01 vis-à-vis Rs.427.86 of 2014. Low Growns averaging 429.85 show a significant decrease of Rs.79.04 vis-à-vis Rs.508.89 of 2014. On a cumulative basis too even in USD terms 2015 averages show a decrease vis-à-vis 2014. It is also relevant to note that these averages achieved in 2015 are even lower to the 2013 levels, both in SLR/USD terms.