The Colombo Tea Auction experienced a slight uptick in offerings this week, totaling 5.2 million kilograms.
According to insights provided by Forbes and Walker Tea Brokers, the market saw enhanced demand coupled with a general rise in prices, potentially influenced by reduced volumes. Interestingly, similar trends were observed across other auction centers, where prices appreciated during the same period.
Ex-Estate offerings remained relatively steady, amounting to 0.74 million kilograms. Notably, improved quality teas emerged from the Western slopes, with select Nuwara Eliyas showing improvement, while offerings from Uva/Uda Pussellawa remained consistent compared to the previous week.
In terms of specific varieties, Best Western BOP/BOPF's witnessed price appreciation of up to Rs. 100 per kilogram, especially for higher-quality invoices. Meanwhile, other BOP categories maintained price levels from the previous week, with corresponding BOPF's appreciating by Rs. 50-70 per kilogram in most cases. In the Below Best category, better quality BOP's experienced increases of Rs. 100 per kilogram and more, while others remained firm with slight increases.
The High & Medium Grown CTC prices remained robust, while corresponding Low Grown types, particularly PF1's, initially saw price increases of around Rs. 50 per kilogram. However, they gradually eased as the auction progressed, declining by a similar margin.
Shippers showed increased activity to the UK, the continent, South Africa, and Japan, particularly for high-quality teas. The CIS region remained active across various offerings.
Low Grown teas, amounting to 2.31 million kilograms, received fair demand, with active participation from shippers to Iran, Iraq, and the CIS, and selective interest from shippers to Turkey.
In the Leafy catalogues, OP1's maintained firm prices, while select Best and Best BOP1's retained previous levels. Below Best teas saw slight declines, while bottom-tier teas remained stable.
Tippy catalogues witnessed firmness in well-made FBOP/FF1's, with clean leaf Below Best and bottom-tier teas appreciating. However, irregularities were noted in remaining qualities.
In the Premium catalogues, very Tippy teas met strong demand and retained firm prices, with other varieties appreciating. Teas at the bottom of the quality spectrum remained steady.
