Ceylon Tea quantities drop, Russia eases

Strong demand, limited quantities and depreciation of the Rupee is said to have helped a cross section of Ceylon teas to achieve a level of price previously not seen at the public auction, Asia Siyaka Brokers said.

Russian demand has slowed down this week and buyer activity at the auction is not as it used to be, Asia Siyaka Brokers CEO Anil Cooke said.

He noted that right now the availability of tea at the auction will be set off against the low demand from Russia.

With the sharp depreciation of the Russia Rouble the cost of doing business will become more expensive and it is likely that in this context the Russian importers will be renegotiating their prices with the Sri Lankan exporters, he noted.

As a result of the production he noted that the biggest concern will be the next three applications of fertilisers and the crop requires fertilisers and agro chemicals with the former currently not available and the latter banned.

This week saw 4.88 million kg on offer at the Colombo tea auction with 2.05 million kg being Low Grown Main Grades and 1.7 million kg were High and Mid Grown Main Grades.

Low Growns appreciated in value, it was stated and in the Leafy grade catalogues select best liquoring OP1s held firm; whilst others sold at dearer rates.

OPs met with good demand and appreciated in value and the OPAs gained in value as well while in the Semi Leafy catalogues BOP1s were substantially dearer. FBOPs met with good demand and sold at dearer rates. In the Tippy small leaf catalogues FBOP1s were substantially dearer.

Ex-Estate prices were sharply dearer all round with Best Western BOPs dearer up to Rs.80; others dearer Rs.100 and more. High priced seasonal BOPFs irregularly dearer Rs.50; all others moved up Rs.100 and more.

Best Nuwara Eliya BOP/BOPFs sharply dearer. Better Udapussellawa and Uva BOPs moved up Rs.80 to Rs.100; others moved up a further Rs.20. BOPFs gained Rs.100 to Rs.120. Medium BOP/BOPFs moved up Rs.100 and more. CTC BP1s sharply dearer for small selection. Liquoring PF1s Rs.90 to Rs.120 dearer. Bottom gained Rs.100; poorest was irregular. (SD)