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Sri Lanka tea prices ease lower, low growns drive May average to all time high

ECONOMYNEXT- Sri Lanka’s tea prices continued ease lower across grades and elevations in the first auction in June, but May national sale average have hit record, helped by low grown teas, brokers said.

Sri Lanka sold 6 million kilograms of Ceylon tea with 0.9 million kilograms of Ex-Estate tea and 2.6 million kilograms of Low Grown (Leafy/Tippy) teas at the first auction in June.

At the previous auction on May 26 and 27 Sri Lanka sold 5.3 million kilograms of tea.

Sri Lanka recorded a tea sale average of 697.57rupees/3.74 US dollars which was the highest ever recorded, Colombo-based Ceylon Tea Brokers, said in a report.

The Low Grown average for May 2020 of 744.52 rupees was also the highest recorded, the firm said.

After spiking sharply in May amid a fall in the rupee, and pent up demand prices have fallen for the three weeks in a row.

At the first auction in June ex-estate teas met with significantly lower demand and Low Grown Orthodox faced the same low demand levels, tea brokers said.

Low grown orthodox tea demand declined with an elevation average of 744.52 rupees which is the highest monthly Low grown (Combined) average.

OP1 graded teas fell around 50 rupees a kilogram while OP/OPA fell 30 rupees and PEK grades fell 40 rupees.

In High grown teas Best westerns declined by 50 rupees and more for select high priced teas while in Below bests few were firm and the others declined by 30 to 40 rupees in BOP grades.

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There were no offerings in Nuwara Eliya’s this week. Uva/Uda Pussellawa’s were up by 20 rupees.

In BOPF grades Best and Below best categories declined by 60 to 70 rupees and more following quality. Plainer sorts were 30 to 50 rupees easier.

Meanwhile BOPF grade Nuwara Eliya’s saw hardly any offerings whereas Uva/Uda Pussellawa select high priced teas were easier and the others declined by 20-40 rupees.

In Medium grown teas, BOP were hardly offered up while BOPF grades declined by 50 rupees and more.
Well-made OP/OPA’s were easier by 10-20 rupees per kilogram whereas others together whith lower end teas fell by 20-30 rupees and more.

Well made PEK/PEK1’s were barely steady as Below bests along with lower end teas were easier by 10-20 rupees a kilogram.

Select Best FBOPs were irregularly steady as others were easier by 20-40 rupees. Select best FF1’s too eased whilst others declined by 20-40rupees a kilogram and more at times.

Low grown, select best BOP1 teas declined substantially while others eased by 10-20 rupees or more. Meanwhile select best OP1 teas fell substantially and Below bests eased 20-40 rupees and more.

OP’s declined by 10-20 rupees and more.

Select best BOP and BOPF grades eased while other cleaner below bests and Cleaner sorts held firm.
Very tippy FBOPF/FBOPF1 teas continued to attract demand while Best and cleaner below bests maintained.

CTC

In CTC teas, high grown BP1s were irregular and PF1s declined by 30-40 rupees following quality.
Mid grown BP1 too were irregular as PF1s declined by 20-40 rupees.

Low grown BP1 select invoices were dearer following special inquiry, while the others sold around last. PF1s were up to 100 rupees a kilogram easier. (Colombo/June07/2020)