Rubber, tea markets crash as rupee firms
The Sri Lankan rupee has been strengthening against the dollar and its impact was severely felt this week at the rubber auction where nothing got sold and at the tea auction where 26 per cent of the stock went unsold.
Rubber stocks at the Colombo Auction went unsold for the very first time as prices came down drastically and plantation companies opted to withdraw the sale this week.
Asia Siyaka Brokers stated that there was approximately 200,000 kg of rubber on offer this week and not one stock was sold causing a grim situation at the auction this week as plantation companies opted to withdraw their sale.
Prices of rubber of the best grades that were sold at Rs.625 last week crashed to Rs.450 in the opening bid and it remained the same for all stocks.
The lower grades dropped from Rs.480 the previous week to Rs.315 at this week’s auction as a result of which nothing was sold and there is an expectation of a stabilisation of the currency.
Meanwhile, buyers at the Colombo Tea auction dropped bids ranging from Rs.100 to Rs.400 per kg and at times more.
At the auction, there was a significant amount of unsold stocks of tea that rose sharply to 26 per cent of the 5 million kg on offer. Some 2.40 million kg were Low Grown Main Grades and 1.76 million kg were High and Mid Grown Main Grades.
Premium catalogues of most teas remained unsalable due to lack of suitable bids whilst only a selection of well-made very tippy teas saw some inquiry.
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