COLOMBO TEA AUCTION 26/08/2015

C O M M E N T S

*******************

There was less demand this week and prices were often lower to last. The weak market sentiment is possibly emanating due to the decline in oil prices and the weakening of the Russian Ruble which would no doubt adversely impact on the trading conditions in the CIS and the Middle East.

Ex-Estate offerings comprised of 1.3 M/Kgs. Overall quality was irregular being teas harvested immediately following the “Go Slow” on Plantations during the first half of July 2015. Best Western BOP’s where quality was maintained gained up to Rs. 20/- per kg on its limited availability whilst the corresponding BOPF’s declined between Rs. 30-40/- per kg. In the below best category select improved BOP’s gained up to Rs. 20/- per kg whilst the plainer sorts were irregular. Corresponding BOPF’s declined Rs. 20-30/- per kg. Nuwara Eliya BOP/BOPF’s declined by Rs. 20/- per kg and Rs. 50/- per kg respectively. Udapussellawa BOP’s declined Rs. 30/- per kg whilst the corresponding BOPF’s were irregular. Seasonal teas from the Uva region appreciated following quality and air mail inquiry whilst other BOP/BOPF’s declined by up to Rs. 30/- per kg and Rs. 10-20/- per kg respectively.

 Low Growns totalled 3.5M/kgs this week. There was fair demand at lower levels. In the Leafy catalogue BOP1’s were generally firm. High priced OP1’s were irregularly lower, others were however fully firm. Better OPA’s too were firm to irregularly dearer whilst others and OP’s declined. A few select best PEK/PEK1’s maintained. Here again others declined Rs.5-10/- per kg and more. In the Tippy catalogue too select best FBOP/FF1’s maintained. Others were mostly easier. At the lower end a range of clean leaf teas were fully firm to dearer. Better made Tippy teas too were irregularly dearer whilst others declined to last. There was fair demand from shippers to CIS, Turkey, Dubai, Saudi Arabia, Kuwait and Iraq.

*******************