Sri Lanka tea pick up at auction mid-July
ECONOMYNEXT – Sri Lanka tea prices picked up marginally in the third week of July helped by good demand for Low Growns, quality teas fetching better prices, brokers said.
Sri Lanka sold 6.8 million kilograms of tea, selling 1 million kilograms in Ex-Estate teas (teas sold while in the factory itself to retain quality) while selling 6.8 million kilograms in Low Grown (Leafy/Tippy) teas.
It was reported that 7 million kilograms of tea were sold in total at the auction held last week.
Brokers said that Ex-estate teas saw fair demand, while Low Growns saw good demand in the auction held on 14th and 15th July.
Last week, the High Grown auction average was tea sale average of 527.76 rupees.
In BOP grades, Best westerns wit improved quality gained n price while Below best, clan leaf coloury sorts gained by 10-20 rupees per kilogram.
BOP Nuwara Eliya’s saw few offerings while Uva/Uda Pussellawa prices were steady.
In BOPF grades Best Westerns with a good quality gained by 10-20 rupees per kilogram while other sorts sold around last week prices, brokers said.
BOPF grade Nuwara Eliya’s in the higher price levels declined by 50 rupees while others remained firm. Uda Pussellawa prices were firm.
Last week, the Medium Grown auction average was 522.20 rupees up 4.41 rupees from a week before.
Well-made OP/OPA’s gained 10-20 rupees whereas teas in the lower end fell. PEK/PEK1’s, in general, gained 10-20 rupees per kilogram and more at times.
BOPs were irregular in price while BOPF was firm, brokers reported.
Select Best FBOPs were firm whilst others went up by 10-20 rupees per kg. Select best FF1’s declined sharply as other sorts gained 10-20 rupees.
Last week the Low Grown tea sale average was 661.90 rupees up 3.64 rupees from a week earlier.
Select best BOP1s gained while others were barely steady.
Select best BOP’s appreciated. Best and cleaner teas in the below bests maintained prices.
Very tippy teas attracted good demand and were dearer. Bests appreciated while Below best teas gained at the bottom.
Select best FF1’s were irregular. Best and cleaner below best were firm. Cleaner teas at the bottom appreciated. Others were irregular.
In CTC teas, high grown BP1s were firm and gained in price while PF1s were lower by 20-30 rupees a kilogram with poor quality sorts were neglected.
Mid grown BP1 prices went up irregularly while PF1 coloury sorts were firm. Thin liquoring teas were again neglected and were seen difficult to sell.
Low grown BP1s were reportedly irregular. PF1s Commenced firm and appreciated as the sale progressed, with select invoices gaining substantially following special inquiry.
Crop intake and weather
Western, Nuwara Eliya regions reported bright mornings and overcast evenings with occasional showers during the course of the week.
Uva/Udapussellawa regions reported bright weather with a few isolated showers throughout the week.
Meanwhile, Low Growns in the Ruhuna and Sabaragamuwa regions reported clear weather throughout the week.
The Department of Meteorology predicted rainy weather in the Central Province in the week ahead.
According to the Department of Meteorology, rainfall above 75 millimetres is expected in both regions during the week ahead.
Brokers said that the Western, Nuwara Eliya, Uva, and Udapussellawa regions showed a decrease in the crop intake, while the Ruhuna and Sabaragamuwa regions maintained crop intake from last week.