COLOMBO TEA AUCTION 09/09/2015

C O M M E N T S

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The 35^th sale of the year which was concluded today had on offer a total of 6.4 M/Kgs. There was fair demand and generally a better undertone particularly towards the close of the sale. This trend could be attributed to the depreciation of the SLR vis-à-vis US$ and the improved buying interest from shippers to the CIS.

Ex-Estate offerings totalled a 1 M/Kgs. Overall quality was slightly preferable to last. Best Western BOP’s gained Rs. 20/- per kg and more following quality whilst the corresponding BOPF’s were fully firm and Rs. 20-30/- per kg dearer following quality. Improved brighter BOP’s and BOPF’s in the below best category gained up to Rs.20/- per kg whilst the plainer BOP’s were Rs. 10-20/- per kg dearer. Corresponding BOPF’s which were firm and up to Rs. 10/- per kg dearer at the commencement, appreciated Rs. 20/- per kg and more by the close. A few select improved Nuwara Eliya’s appreciated in value whilst the others were neglected following plainer quality. Udapussellawa’s-clean leaf BOP’s were Rs. 10-20/- per kg dearer whilst the corresponding BOPF’s were irregular. Poorer Sorts were once again, difficult of sale. Uva seasonal teas continued to sell well following quality whilst other BOP/BOPF’s gained by Rs. 10-20/- per kg and Rs. 10/- per kg respectively. High and Medium Grown CTC teas met with sluggish demand and prices were irregular and barely steady whilst the corresponding Low Grown types sold around last week’s levels. Liquoring leafy teas continued to sell well and prices ranged between Rs. 600-1800/- per kg.

There was improved demand from shippers to the CIS, South Africa and Hong Kong whilst UK, the Continent and Japan bid selectively on a selection of the better liquoring teas.

Low Growns comprised of 3.1M/kgs in the Leafy/Tippy catalogues, approximately 0.6M/kgs lower to the preceding sale. After a hesitant start prices gathered momentum this week and closed at fully firm to dearer rates for most grades. This could be attributed mainly to the lower quantity on offer coupled with the devaluation of the SLR against the USD making our prices more competitive. In the Leafy catalogues better BOP1/OP1’s sold at fully firm to irregularly dearer rates whilst better OP/OPA’s too were fully firm to irregularly dearer particularly towards the close. Better PEK/PEK1’s too were selectively dearer whilst others were irregular. In the Tippy catalogue better FBOP/FF1’s which were Rs.10-15/- per kg lower gained marginally towards the closure. Cleaner secondaries too were met with better demand towards the close. Tippy invoices were fully firm to selectively dearer. There was good demand from shippers to Turkey, CIS, Dubai, Saudi Arabia, Kuwait and Iraq this week.

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