COLOMBO TEA AUCTION 06/01/2016

C O M M E N T S

1^st sale of the year got off a good start with prices firm to selectively dearer.

Ex-Estate offerings totalled a 1.0 M/Kgs marginally lower to the previous Auction quantity of 1.1 M/Kgs. There was good demand particularly for the better teas. Best Western BOP’s recorded a substantial gain on select invoices following air mail inquiry whilst the others together with the brighter below best sorts gained Rs. 10-20/- per kg. The corresponding BOPF’s gained Rs. 5-10/- per kg and more for the brighter sorts particularly as the sale progressed. Plainer BOP’s were Rs. 5-10/- per kg dearer whilst the BOPF’s were irregular with poor leaf teas - often difficult of sale. Nuwara Eliya BOP/BOPF’s where quality was improved recorded a substantial improvement in prices whilst the others were irregular and barely steady. Teas from the Udapussellawa region were irregular following quality. Uva BOP’s were mostly firm whilst the corresponding BOPF’s were firm and up to Rs. 10/- per kg dearer. CTC teas were mostly firm with select clean leaf coloury teas gaining Rs. 10-20/- per kg. Here again, poorer sorts were often difficult of sale. Liquoring leafy teas witnessed some renewed interest and consequently, these teas appreciated quite substantially for the limited availability on offer.

Low Growns totalled 2.8M/kgs in the Leafy/Tippy catalogues this week. There was fair demand. In the Leafy catalogue better OP/OPA’s were fully firm to dearer. Others were irregular. Prices at the lower end too were fully firm. Better OP1/BOP1’s together with the cleaner sorts at the lower end were fully firm to selectively dearer. Better PEK/PEK1’s though irregular were mostly firm. Others particularly the teas at the lower end were irregular and mostly easier. In the Tippy catalogue better FBOP/FF1’s were fully firm to dearer. The cleaner secondaries too which were irregular at the commencement gained to close at fully firm to dearer rates. In the Premium catalogue too prices were fully firm to dearer with a few selected invoices gaining substantially. Shippers to Dubai, Turkey, CIS, Iraq together with Saudi Arabia were active this week.

 Auction Averages – January – December 2015

Lowest since 2012

 Low Growns show the widest variance

Total Auction Averages for January – December 2015 totalled Rs.402.14 vis-à-vis Rs.461.86 of January – December 2014 showing a decrease of Rs. 59.72. High Grown average of Rs.388.38 for 2015 too show a decrease of Rs.31.98 vis-à-vis Rs.420.36 of January – December 2014. Mediums averaging Rs.362.57 show a decrease of Rs.47.49 vis-à-vis Rs.410.06 of January – December 2014.  Low Growns averaging Rs.416.32 for January – December 2015 is the most impacted with a negative variance of Rs.71.77 vis-à-vis Rs.488.09 of January – December 2014.

Warmest Wishes to our Clients and Readers

for a

Happy, Successful & Enriching New Year - 2016!