Sri Lanka tea prices mixed in mid June
ECONOMYNEXT – Sri Lanka tea prices were mixed at the second auction in June with some ex-estate Uva and Udapussellawa teas showing gains while many grades continued to ease lower, but volumes were from April and May, brokers said.
At the auctions on June 16 and 17 with Low grown orthodox teas met lesser demand and Ex-Estate received fair demand, brokers said.
Sri Lanka sold 6.7 million kilograms of Ceylon tea with 1.0 million kilograms of Ex-Estate tea and 2.7 million kilograms of Low Grown (Leafy/Tippy) teas at the second auction in June.
At the previous auction on June 09 and 10 Sri Lanka sold 6 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 national sales average for the two sales in June was 632.04 rupees/ 3.4 US dollars, a Colombo-based Ceylon Tea Brokers report said.
Sri Lanka tea prices which fell for the three weeks in a row has shown a slight improvement this auction since prices seem to be gaining in some categories.
Sri Lanka Tea Production for the month of May 2020 fell to 28.36 million kilograms, from 34.25 million kilograms in 2019.
Elevation wise analysis showed that for the month of May 2020 Medium Grown underwent an increase of 0.20 million kilograms whilst High growns show a decrease of 1.38 million kilograms.
Low Growns declined 4.71 million kilograms when compared to the same period last year.
CTC’s recorded 2.41 million kilograms for May 2020, declining 0.03 million kilograms when compared to 2.43 million kilograms a year ago.
In High grown teas Best westerns went up by 50 rupees while Below Bests declined 30 to 50 rupees in BOP categories form an elevation average of 586.01 last week.
There were no offerings in Nuwara Eliya’s this week. Uva/Uda Pussellawa’s were firm and gained 10 to 20 rupees a kilograms.
In BOPF grades Best Westerns declined by 50 to 80 rupees a kilogram whereas Below Bests declined 40 to 50 rupees and plainer sorts too continued to ease.
Meanwhile BOPF grade Nuwara Eliya’s saw hardly any offerings whereas Uda Pussellawa started out firm and declined by 30-40 rupees afterwards. Uva’s neat leaf coloury sorts were 20-30 rupees per kilograms.
In Medium grown teas, BOP teas were irregular while BOPF grades declined by 50 rupees and more as the sale progressed from an elevation average of 568.84 rupees last week.
Well-made OP/OPA’s eased by 10 to 20 rupees a kilogram along with teas in the lower end which declined by similar margins.
Well-made PEK/PEK1’s eased by 30-40 rupees per kilogram and more particularly for the smaller varieties. Below Best together with teas at the lower end came down 10-20 rupees and more at times.
Select Best FBOPs eased, while others eased by 30-40 a kilogram. Select Best FF1’s were lower by 20-30 rupees a kilogram, and others declined by 30-40per kilogram and more at times.
Low grown, select best BOP1s were fully firm to irregularly increased. Others commenced 10-15 rupees per kilo lower and declined further towards the close.
Meanwhile clean Below Best OP1 commenced around last week’s levels but declined 10-20 rupees per kilogram towards the close.
OP’s which were high priced declined irregularly while others declined 10-20 rupees in price.
Select best BOP and BOPF grades eased while other cleaner below bests and Cleaner sorts too followed suit.
Very tippy FBOPF/FBOPF1 teas continued to attract good demand and were gaining substantially. Best too together with cleaner below best appreciated.
In CTC teas, high grown BP1s were firm and the gained irregularly and PF1s declined by 30 and more for poorer quality teas.
Mid grown BP1 too were irregular as PF1s teas experienced the same price changes.
Low grown BP1 select invoices were dearer, while the others sold around last. PF1s-good liquoring teas went up by 10-20 rupees while other sorts were barely steady. (Colombo/June21/2020)