For the past eight weeks the Western High and Orthodox Low Grown averages have been moving in opposite directions.
Lanka Commodity Brokers Ltd Director Jehan Algama told Daily News Business yesterday that the Orthodox Low Growns saw a steady decline in averages from the month of February onwards.
The average of Rs. 663.43 recorded in January fell to Rs. 645.98 in February and eased substantially up to Rs. 540.02 in August.
There was a slight improvement in August but the sales spanning the months of September and October saw a reversal of fortunes with the auction average of Orthodox Low Growns moving up to Rs. 604.49 in October.
There has been more consolidation of prices during the past eight weeks with the average moving up further as can be seen from the following graph.
High Grown teas on the other hand have started coming down week by week during the last several auctions amidst plainer quality of offerings and less interest from the Tea Bag sector operating for Russia.
Past experience would show us that Russia purchases their winter requirements much in advance due to logistical constrains that prevail during their freezing winter season, and, only limited purchases are made during the latter part of November and throughout December, although renewed interest will be seen from mid January, 2019 onwards.
Meanwhile, Asia Siyaka Commodity Brokers PLC Director/ Senior Vice President Sohan Samaranayake told Daily News Business, “This week’s sale quantity of 6.4 M kgs comprised of 3.1 M kgs of Low Grown and 0.9 M kgs of High Growns sold in the Ex-Estate catalogue.”
“There was sustained good demand for leafy Low Growns which ruled firm to dearer following been demand from Saudi Arabia, Kuwait, Syria and the U.A.E. Libya and Iraq operated for below best and secondary teas.”
“Turkey was active for Pekoe grades. Tippy teas however were only firm to sometimes easier as buying for Iran was subdued.”
Another week of lack lustre demand was seen for Ex-Estate teas. Only a handful of Western High Growns with maintained quality were able to sell around previous levels whilst all others eased Rs.10-30/-.
The quality by and large of offerings reflected a drop in standard of leaf appearance and liquors.
A limited range of the better made CTC PF1’s were about firm whilst the reminder was much lower.
Demand from traditional Western markets was subdued ahead of the upcoming festive season.
There was fair demand for below best teas from Hong Kong and China. Interest from Russia was weak.
Low Growns met with general demand. BOP1s were fully firm on last week’s levels, whilst select best OP1s were discounted sharply; below best and secondaries held firm, poorer varieties lost out in value.
OPs sold at dearer rates. Select best OPAs were discounted; all others were firm. Well-made stylish Pekoe’s were firm on last, below best and others appreciated. Pekoe1’s were firm to lower all-round. In the Tippy Small Leaf catalogues FBOP1s sold at lower rates, whilst select best FBOPs held firm.
Below best varieties declined in value, poorer varieties held firm. FBOPF1s sold at lower rates all-round. Select best FBOPFs lost out in value, whilst others held firm.
BOP / BOPFs lost out in value too. In the Premium Flowery catalogues long leaf and small leaf tippy teas discounted sharply and remained unsalable.
0.93 Mnkg of Ex-Estate teas met with fair demand at lower rates. Except for a few select Western BOP which maintained, the other BOPs and their BOPFs were lower upto Rs. 40.
Nuwara Eliya BOPs were difficult of sale but BOPFs were firm and at times a little dearer.
Well-made Udapussellawa BOPs maintained but the others and the BOPFs were lower Rs. 10 to Rs. 30. Clean Uva BOPs were firm, but the others and the BOPFs lost Rs. 10 to Rs. 30. Medium BOPs were about firm.
Others were Rs. 20 to Rs. 30 lower and the BOPFs were lower Rs. 10 to Rs. 15. CTC PF1s were a lower market by Rs. 20 to Rs. 30. Best BP1s maintained. Others were lower Rs. 20 to Rs. 30.
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