Russia continues to buy Ceylon Tea

While Russian buyers continued to buy Ceylon Tea at the auction this week the buying was subdued for particular categories, Asia Siyaka Brokers noted.

They observed that prices had also eased on teas picked up by the Russian market, it was noted but the prices are lower than last week.

Demand has been steady and other markets are also operating in their normal style; with some of the Turkish standards a bit weaker.

Forbes & Walkers Tea Market Report stated that there was a degree of uncertainty and volatility in the future that would no doubt be a concern for the Sri Lankan tea sector considering the Ceylon Tea presence in both these markets.

Trading conditions are likely to be strained and additional war risk surcharges would further escalate the high logistics rates, which have already adversely impacted on tea prices.

Total auction offerings declined sharply and totaled 4.98 million kg compared to 6 million kg on offer the previous week.

Ex-estate offering comprised 0.81 million kg down from a 0.98 million kg the previous week.

Overall quality of teas from the Western planting districts showed a decline with fewer seasonal teas on offer. Consequently, prices for the better Westerns declined by Rs.20-30 per kg and more with the exception of the few available seasonal teas which continued to sell in keeping with quality.

High and Medium Grown CTC teas continued to witness a bearish sentiment, whilst the Low Growns which have been selling at premium levels for a period of time declined fairly sharply by Rs.30-60 per kg.