COLOMBO TEA AUCTION 27/05/2015

C O M M E N T S

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A lower volume of tea comprising of 7.6 M/Kgs came under the hammer this week. Once again, there was good general demand for the better teas.

Ex-Estate offerings still continued to be large and had on offer a 1.4 M/Kgs. Quality of teas on offer continued to be relatively uninteresting with a larger weight of the offerings comprising of plainer quality teas. Prices for teas in the Best Western category were irregular following quality whilst in the below best and plainer category, prices declined by Rs. 5-10/- per kg and more for the poor leaf teas. Nuwara Eliya’s declined sharply on the previous week’s high prices following quality. Teas from the Eastern sector were once again irregular with the clean leaf teas securing a significant premium over the poorer counterparts. At the bottom end, BOP’s & BOPF’s are now selling between Rs. 300/- to Rs. 310/- per kg (US$ 2.30)-lowest since March 2012. High and Medium Grown CTC clean leaf teas witnessed a slightly better demand whilst Low Growns too followed a similar trend with the better teas gaining Rs. 5-10/- per kg. Liquoring leafy teas met with selective demand although prices still continued to range between Rs. 500/- to Rs. 1700/- per kg. Consequent to the availability of clean leaf teas being few and far between, these teas are realizing a significant premium over the poorer counterparts.

Shippers to the CIS continued to be reasonably active with additional buying interest from Japan, Hong Kong and South Africa. There appeared to be limited interest from the UK and the Continent.

Low Growns comprised of 3.2M/kgs showing a decrease of 0.5M/kgs when compared to last week. There was demand particularly for the well made teas. In the Leafy catalogue better OP1/ BOP1’s were firm to dearer. Others were irregular, at the bottom end prices maintained. Better OP/OPA’s were dearer. Others maintained following quality. Teas at the bottom were irregular. Better PEK/PEK1’s were firm. Bolder types were firm to dearer. Teas at the bottom were barely steady. In the Tippy catalogue best FBOP/FBOPF1’s appreciated. Well made teas in the below best maintained. Others were irregular. Well made Tippy invoices continued to attract good demand. Well made teas in the below best maintained. Others were irregularly lower. Shippers to CIS, Turkey, Syria, Dubai, Iraq, Libya and Saudi Arabia were active this week.  

SRI LANKA TEA PRODUCTION - APRIL 2015

Tea production for the month of April totalled 31.8M/kgs showing an increase of 2.3 M/kgs vis-à-vis 29.5M/kgs in April 2014. When analyzing the production of each elevation, High Growns and Medium Growns have shown an increase with the Low Growns showing a marginal decline. (As detailed in page no.10)

Cumulative production for the period of January – April 2015 of 111 M/kgs show a growth of 7.6 M/kgs when compared to January – April 2014 of 103.4 M/kgs.

CTC production of 1.7 M/kgs shows a marginal increase of 0.3 M/kgs when compared to the same period in 2014. High Growns and Low Growns show an increase whilst Mediums show a decline. When analyzing the cumulative CTC production of 6.5 M/kgs of 2015 show a marginal increase, High Growns and Low Growns show an increase whilst Mediums show a decline.

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