Business

Colombo Tea auction concludes first sale of the year

 

The Colombo Tea Auction concluded its first sale of the year with a total of 6.2 million kg of tea on offer.

“Ex-Estate offerings were maintained around approximately 1 million kg, whilst the quality of offerings particularly from the Western sector were irregular,” stated Forbes & Walker Tea Brokers.

According to Forbes & Walker Tea Brokers, overall auction quantities amounted to 5.2 million kg, comprising 9,500 lots of tea. Additionally, ex-estate offerings amounted to 0.7 million kg, with overall quality being reasonably maintained.

There was fair demand, although at slightly easier levels. The select best BOP/BOPFs were often easier following quality, whilst prices for teas in the other categories tended to fluctuate due to the increased availability combined with the demand factor based on the urgency of shipments.

BOPs declined Rs. 20-30 per kg, whilst the corresponding BOPFs were barely steady, with the exception of the brighter sorts, which declined by Rs. 20-30 per kg. On the lower end, BOPs declined Rs. 10-20 per kg, whilst the corresponding BOPFs were generally firm. BOP/BOPFs declined from Rs. 50 per kg and Rs. 10 per kg for Nuwara Eliya and Uda Pussellawa, respectively. In Addition, the Uva BOP’s had a further decline of Rs. 10-20 per kg.

Corresponding BOPFs sold around last auction’s (Sale No. 50 of 2019) levels, and gained momentum for demand for teas at the lower end, whilst the better teas tended to decline and fluctuate following quality.

Forbes & Walker further stated that the high and medium grown CTC teas continued to witness good demand with the exception of poorer Low Grown types, which were neglected.

“Low Growns comprised approximately 2.8 million kg in the Leafy/Semi Leafy and Tippy catalogues. There was fair demand. BOP1/OP1s were irregularly lower. A selection of well-made OP/OPAs maintained. Balance declined substantially. However, teas at the bottom sold around last levels,” Forbes & Walker stated.

In the Tippy catalogues, FBOPs in general were firm, and selected Best FF1s were firm to selectively dearer, whilst the balance, together with Best, were easier; however, Below Best and teas at the bottom were fully firm.

In the Premium catalogues, very Tippy teas continued to attract good demand. 

Meanwhile, the Colombo Tea Auction cleared 5.2 million kg of tea at the third e-auction, in 2020.

The first-ever e-auction was held on 4 April, with the Colombo Tea Traders Association and the Colombo Tea Brokers Association, in partnership with technology platform provider CICRA Solutions.