Price variances reflect quality at Colombo Tea Auction

The overall auction quantities were maintained around 6 million kg with the Large Leaf teas continuing to meet with good demand and the Liquoring Small Leaf types encountered selective demand primarily following quality at this week’s Colombo tea auction.

Ex-Estate volumes too were fairly similar to last week and totaled 1 million kg and the overall quality was irregular and barely maintained, brokers said.

The Best Western BOP/BOPF’s declined by Rs.20-40 per kg and Rs.20-30 per kg respectively with select high priced teas at times recording greater negative variances perhaps due to the decline in quality and as a consequence, the absence of bids.

In the Below Best category, BOP’s declined Rs.20-30 per kg and more for select high priced teas of the previous week, while the corresponding BOPF’s were irregular following quality.

The Forbes & Walker Tea Market Report asserted that it was not uncommon to observe significant price variances between consecutive invoices of the same estate, which were often reflective of quality variances.

Nuwara Eliya teas continued to have disappointing prices for the available quality. Uva/Uda Pussellawa’s – better teas recorded a Rs.20-40 per kg decline, once again reflective of quality, whilst teas at the lower end continued to sell around last week’s levels.

High and Medium Grown CTC teas continued to weaken and Rs.10-20 per kg decline was often evident and here again, more so for the teas in the higher price bracket. Low Grown varieties declined by Rs.30-40 per kg with regular buyers being less forceful this week.

Large Leaf liquoring teas, particularly from the Western slopes, continued to sell reasonably well although here again prices tend to fluctuate following the intrinsic quality variances.

Low Growns comprised 2.4 million kg in the Leafy/Semi Leafy ad Tippy catalogues which met with fair demand.

In the Premium catalogues, Very Tippy teas continued to attract good demand. Best and cleaner Below Best sold around last levels, while the balance were easier. (SD)