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Ceylon tea prices ease in September first week

ECONOMYNEXT – Sri Lanka tea prices eased with only a few high and medium grown teas seeing gains in the first auction for September, brokers said.

Sri Lanka sold 5.9 million kilograms of tea, selling 0.75 million kilograms in Ex-Estate teas (teas sold while in the factory itself to retain quality) while selling 2.6 million kilograms in Low Grown (Leafy/Tippy) teas.
Sri Lanka sold 6.2 million kilograms of tea in the auction held in the previous week.

Low Growns

Last week the Low Grown tea sale average was 669.53 rupees up down by 62 cents from a week earlier.
BOPF teas were generally firm.

Select Best BOP’s eased while Best and cleaner Below Best maintained their prices from last week and others were lower following poor quality.

Better OP’s were made gains while Below Best varieties in particular were irregular and lower. At the lower end, cleaner types were firm while others eased.

Better OPA’s together with clean Below Best were gaining as others were barely steady. At the lower end, cleaner types were firm. Others eased.

Select Best FBOP’s were irregularly lower. Best together with cleaner Below Best and cleaner teas at the bottom maintained prices from the previous auction.

Very Tippy FBOPF/FBOP1 teas continued to attract good demand and were firm.

High Growns

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Last week, the High Grown auction average was tea sale average of 541.71 rupees.

In BOP grades, Best Westerns were irregular following quality issues while brighter Below Best teas gained 20-30 rupees a kilogram. Plainer sorts were not steady.

BOP Nuwara Eliyas saw next to no offerings. BOP Uda Pussellawa’s sold around last week price levels whereas a few select Uva teas gained up to 20 rupees a kilogram.

In BOPF grades, Best Westerns where quality was maintained, prices remained firm from last week levels while others declined by 10-20 rupees a kilogram.

Below Best teas with brighter leaf gained while plainer coloury teas too went up by 20 rupees.

BOPF grade Nuwara Eliya’s were so no offerings. Uda Pussellawa prices gained up to 10 rupees a kilogram. A few select Uva teas gained 20 rupees a kilogram.

Medium Growns

Last week, the Medium Grown auction average was 541.14 rupees down 6.61 rupees from a week before.

Well-made OP/OPA’s were firm on last. Others were easier Rs. 10-20 per kg. Teas at the lower end were firm on last

BOP prices were irregular while BOPF grades sold around last week prices, tea brokers said.

Select Best FBOPs were easier, whilst the others too were firm to marginally easier.

Well made FF1’s were firm on last. Others eased 10-20 per kilogram and more at times.

CTC

In CTC teas, high grown BP1s eased while PF1s were generally firm and gained 10 rupees a kilogram as the sale progressed
.
Mid grown BP1 prices were irregular while PF1 teas went down by 20 rupees a kilogram, brokers said.
Low grown BP1s were around last week’s levels, PF1s sold around last week auction prices.

Crop and weather

According to the Department of Meteorology, heavy showers with over 75 millimeters of rain is to be expected in the Uva Region during the week ahead. Sabaragamuwa region is to expect heavy showers while light showers are expected in the Ruhuna Region in the week ahead.

Clear weather was reported throughout the week.

The Western and Nuwara Eliya regions reported isolated evening showers throughout the week.
Uva and Udapussellawa, both regions reported bright mornings and overcast evenings with moderate rain fall throughout the week.

The Western and Nuwara Eliya regions experienced a decrease in the crop intake, whilst the Uva, Udapussellawa and Low Grown regions maintained.

Global markets

Bangladesh auction sold 48,828 packages of current season CTC teas which reportedly met with strong demand at higher prices.

The auction sold 11,723 packages of CTC dusts while broker reports said that strong demand was seen in liquoring teas in Bangladesh.

Jakarta auction reported gains in better quality orthodox teas while only a few best CTC sorts attracted strong demand. (Colombo/Sep04/2020)