ECONOMYNEXT – Tea prices in Sri Lanka fell through the highs with prices falling by 50 to 100 rupees per kilogram with the sale in the second week of November, extending the falls from a week earlier.
Sales in the first week of November with low growth teas fell from Rs 167 per kilogram to Rs 1,408.85 per kilogram, compared to the previous week, according to data from Ceylon Tea Brokers.
In the second week of November, weak growth averaged $3.88 per kilogram, down from $4.17 the previous week.
World prices also rise in dollar terms (commodity booms) when the US Federal Reserve prints money. However, the Federal Reserve has now started raising rates, which tends to drive down commodity prices. Coffee prices fell earlier.
At the Nov. 5 auction, the Low Grown/Tippy leafy variety had seen a drop in demand, selling only 2.2 million kilograms.
The Ceylon Tea Brokers auction statement shows that tea prices at all altitudes have fallen by 50-100 rupees.
Low Grown attracts the highest prices for Ceylon tea.
In the 2nd week of November auction, the average sales of Low Grown Tea was Rs 1,408.85 compared to Rs 1,516.83 the previous week.
In dollars, it had slipped to $3.88 per kilogram from $4.17 the previous week.
The best selected BOP1s declined, while the best and worst were irregularly lower. The poorest types are maintained.
OP1 Select the best with the best and below the best declined. The poorer types were fully firm.
Selected top teas from PEKOE/PEKOE1 as well as the full range of bold PEKs were perfectly firm. Cleaner below best and the rest was spotty.
FBOP/FBOP1 With the exception of a few selected top bills, all the others had a lower market.
The few well-made BOP bills held firm while all the others were lower.
The high and low of FBOPF/FBOPF1 lost value, while the high and low below had strong
The average High Grown bid was 1,366.32, compared to 1,429.77 rupees.
BOP’s Best Westerns, a few selected bills were firm while others were down Rs.50/- per kg.
Teas at best shed below by Rs. 40-80/- per kg.
Simpler teas were firm to easier by Rs. 50/- per kg. Those of Nuwara Eliya were irregular and above all easier.
Those of Uda Pussellawa were lower by Rs. 100/- per kg while Uva is lost by Rs. 50/- per kg.
Best Westerns from BOPF, a few selected bills were firm while others were easier by Rs.50/- per kg.
Below are the best and simplest teas available at Rs. 50-100/- per kg.
Nuwara Eliya had almost no offerings. At Uda Pusselawa
shed by Rs. 50/- per kg while Uva was lower by Rs. 50-100/- per kg.
The average Medium Grown auction for the week was 1,366.32 rupees compared to 1,429.77 rupees the previous week.
Last week BOPF’s types of cleaners held steady while all others fell by Rs 50 per kg
In BOP1, Select best and best were down Rs.50/- per kg, while all others were firm.
While Select the best easier by Rs.100/- per kg. Best lower of Rs.50/- per kg while all others are maintained.
OP/OPA’s Select best lower by Rs.100/- per kg. Best and best below paid by Rs.50/- per kg while teas at
the lower end maintained.
In the PEKOE/PEKOE1 – PEK Select best declined by Rs. 50/- per kg while all others were firm.
PEK1 in general, firm.
The Best and Best of FBOP’s Select fell by Rs.100/- per kg while all others fell by Rs. 50/- per kg.
FBOPF1’s top Selects were lower by Rs.50/- per kg while the top ones were down by Rs.100/- per kg.
Below, best mitigated by Rs.50/- per kg. The teas of the poorer types were firm.
The high growth BP1s had hardly any supply while PF1 got lighter by Rs. 50-100/- per kg.
The medium sized BP1s were irregular and the PF1 decreased by 100 rupees per kg.
The low growth BPIs offer almost no supply and PF1 has decreased by 100-200 rupees per kg.
(Colombo/November 12, 2022)