COLOMBO TEA AUCTION 02/12/2015

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C O M M E N T S 

This week a relatively smaller volume of 5.3 M/Kgs came under the hammer. Low Growns delivered mixed results whilst the High and Medium Grown small leaf teas were dearer all around.

Ex-Estate offerings totalled a 0.8 M/Kgs from a 1.0 M/Kgs the previous week. The decline in offerings is primarily due to the stoppage of work due to the Deepawali Festival during the early part of last month. There was improved wide spread demand. The limited volume coinciding with improved demand on account of urgent shipments together with the SLR showing signs of weakening triggered a Rs. 10-20/- per kg upward movement in prices of most High and Medium Grown teas on offer this week. CTC varieties however, met with less demand although here again, select clean leaf teas appreciated Rs. 10-20/- per kg. The corresponding Low Grown varieties were generally firm.

Low Growns totalled 2.5M/kgs in the Leafy/Tippy catalogues this week. There was fair demand. In the Leafy catalogue, select best BOP1/OP1’s were firm to dearer whilst others particularly the below best category were irregular and mostly lower. Better OP/OPA’s were lower. Others maintained last levels. A few select best PEK/PEK1’s maintained whilst a range of bold PEK’s appreciated. Others were irregular. In the Tippy catalogue, better FBOP/FF1’s together with cleaner secondaries appreciated. At the lower end too prices were firm. In the Premium catalogue too most teas were fully firm to irregularly dearer. Shippers to Turkey, Saudi Arabia, Dubai, Iran and Iraq together with CIS were active this week. 

SRI LANKA TEA PRODUCTION – OCTOBER 2015

Production for the month of October 2015 totaled 26.73 M/kgs vis-à-vis 28.19 M/kgs of October 2014 showing a deficit of 1.46 M/kgs. Medium Grown production has shown a marginal gain YOY whilst High Growns and Low Growns have shown a negative growth compared to the corresponding month of 2014.

January – October cumulative production of 279.9 M/kgs too show a decrease of 3.8 M/kgs vis-à-vis 283.7 M/kgs of January – October 2014. High Grown production has remained static whilst Medium Growns have shown a growth YOY. Here again Low Growns show a negative growth vis-à-vis January – October 2014.

October 2015 CTC production of 1.79 M/kgs show a decline compared to October 2014. High Growns and Medium Growns have declined sharply YOY whilst Low Grown production has shown a significant increase compared to the corresponding month of 2014. On a cumulative basis January – October production of 16.6 M/kgs show a marginal decrease of 0.2 M/kgs vis-à-vis 16.8 M/kgs of January – October 2014. Here again High Growns and Medium Growns have shown a decline whilst Low Growns show a significant growth YOY.

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