Sri Lanka tea prices dip in first May auction

ECONOMYNEXT- Sri Lanka’s high grown Ceylon teas saw dips in price in the first week of May amid quality drops lower foreign demand for some grades, after record high in April amid a Coronavirus crisis, brokers said.

At the auction from May 06 to 09 0 3.2 million kilograms of tea were sold with 0.6 million kilograms of Ex-Estate tea and 1.2 million kilograms of lo grown (Leafy/Tippy) tea, for both of which demand was lower.

At the previous auction on April 29/30, 4.5 million kilograms of tea were sold.

Low grown orthodox met with lower demand as Ex-Estate met more of irregular and easier demand with BOP and BOPF grades falling 30-40 rupees a kilo.

The National Average for April sales was RS. 697.52 /$3.6 with the US dollar at 188.95.

In high grown teas, select Best Westerns fell by 20-40 while Below bests fell by 30-40 rupees whilst plainer sorts eased. Pussellawa’s were up to 30-40 rupees.

In BOPF category Best Westerns declined up to 50 rupees and Below bests and plainer sorts were irregular. Nuwara Eliya’s tended dearer as Pussellawa’s fell by 20-40 rupees per kilo.

In medium grown teas other than well-made teas, BOPs were barely stable. BOPF clean leaf teas went up 20-40 rupees per kilogram.

Low grown BOP1, OP, OPA and BOPF were lower. Well-made OP1, select best FBOP’s and BOPs were firm.

-CTC-

In CTC teas, High grown BP1’s and select well-made PF1’s were barely steady. Others were easier by 10-20 rupees.

Mid Grown BP1’s saw hardly any offrings while PF1’s were lower by 20 rupees.
Low grown BP1’s and PF1’s were lower by 10-20 rupees.

-Tea Sale Averages-

Sri Lanka Tea Sale Averages for the Month of April 2020 recorded 689.18 rupees compared to Rs.578.23 in 2019.

High Growns for the month of April recorded Rs.638.95 as against Rs.540.97 in 2019 as Medium Growns recorded Rs.612.72 gaining from Rs.508.14 a year earlier.

Low Growns recorded Rs.739.82 vis-à-vis Rs.608.07 (+Rs.131.75) in 2019.

Cumulative figure for January / April stood at Rs.618.17.

The Department of Meteorology predicts evening showers over most parts of the island in the week ahead in all planting regions.

Western and Nuwara Eliya regions showed an increase in the crop intake, whilst Uva, Udapussellawa, Sabaragamuwa and Ruhuna regions maintained.

In key global markets Mombasa Auction of the 04th/05th May 2020 recorded less general demand with 11.50 percent of total quantity unsold.

Jakarta Auction concluded with sale quantity increasing to 7,020 packages this week with fair general demand.

Sale no. 18 will be conducted on 13th/14th (Wednesday and Thursday) May 2020 commencing at 0730 hours on both days, Ceylon Tea, Traders’ Association announced.

Sale no. 19 will commence on 20th/21st (Wednesday and Thursday) May 2020 at the same time.

The e-auction in the month of June 2020 will be conducted on the usual selling days of Tuesday and Wednesday, in accordance with the Tea Sale Arrangements for the second quarter 2020, already released to the date. (Colombo/May13/2020)