C O M M E N T S

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A total of 7.6 M/Kgs came under the hammer this week. High and Medium Grown teas continued to witness a buoyant market with the BOPF grade appreciating in value for the sixth consecutive week. Low Growns met with fair demand.

Ex-Estate offerings were similar to last and totalled a 1.2 M/Kgs. Overall quality of teas on offer showed no significant change-nevertheless, there was better demand and prices often appreciated by Rs. 10-20/- per kg in most instances. Best Western BOP’s were irregular following quality whilst the corresponding BOPF’s gained Rs. 10-20/- per kg following quality. In the below best category a selection of clean leaf coloury BOP’s gained Rs. 10-20/- per kg whist the others together with the plainer sorts were mostly sold around last week’s levels. Corresponding BOPF’s appreciated up to Rs. 20/- per kg particularly as the sale progressed. Nuwara Eliya BOP/BOPF’s gained by Rs. 10/- per kg and Rs. 30/- per kg respectively whilst Uva/Udapussellawa BOP/BOPF’s gained Rs. 10/- per kg and Rs. 20/- per kg respectively. High and Medium Grown CTC teas witnessed a firm to dearer trend although the select best failed to realize last week’s price levels. Low Grown BP1s declined Rs. 20/- per kg whilst the corresponding PF1s gained by a similar margin. The limited selection of liquoring leafy teas met with less demand and consequently, only the better invoices were sold. Prices for these teas ranged between Rs. 450-1100/- per kg.

Shippers to UK, the Continent and South Africa were selective following quality whilst shippers to CIS continued to bid fairly aggressively on a fair cross section of the teas.

Low Growns comprised of approximately 3.5M/kgs in the Leafy /Tippy catalogues. There was fair demand at slightly lower levels. In the Leafy catalogue, a range of better BOP1/OP1’s sold at firm to marginally dearer rates whilst the others were easier Rs.5-10/- per kg and more, particularly following quality. A range of better OP/OPA’s too maintained last levels. Here again the balance were mostly lower to last. Select best PEK/PEK1’s together with bold PEK’s were firm. Others declined in value. In the Tippy catalogue too select best FBOP/FF1’s together with a selection of cleaner secondaries maintained. Others were lower to last. At the lower end too prices were mostly easier. Tippy invoices too were selectively dearer following quality. At this week’s sale shippers to CIS, Dubai and Turkey were active whilst shippers to Iraq, Saudi Arabia and Kuwait too were active but to a lesser extent.    

Monthly Auction Averages – June 2015

Auction average for the month of June totalled Rs.400.34 showing a decrease Rs.65.86 vis-à-vis Rs.466.20 of June 2014. This also reflects a decrease in USD terms vis-à-vis the corresponding month of 2014. High Grown average totalled Rs.368.11 for the month of June 2015 showing a decrease of Rs.45.83 vis-à-vis Rs.410.03 of June 2014. Medium Growns too totaling Rs.349.85 show a decrease Rs 64.09 vis-à-vis Rs.413.94 of June 2014. Low Growns totalling Rs.428.91 show a significant decrease of Rs.74.40 vis-à-vis Rs.503.31 of June 2014. It is also relevant to note that these averages reflects a decline in USD terms compared to the same period of 2014.

When analyzing January-June 2015 cumulative average of Rs.409.68, show a decrease of Rs.67.87 vis-à-vis Rs.477.55 of January-June 2014. High Growns too for the period January-June 2015 totalling Rs.384.71 show a decrease of Rs.43.63 vis-à-vis Rs.428.34 of January-June 2014. Medium Growns too totalling Rs.370.26 for the period January-June 2015 show a decrease of Rs.53.75 vis-à-vis Rs.424.01 of January-June 2014, whilst Low Growns totalling Rs.428.42 show a  substantial decrease of Rs.80.63  vis-à-vis Rs.509.05 of January-June 2014. Here again these levels are lower to 2014 price levels in USD terms as well. See more details in page no:08