Seven million Kgs of tea were on offer at this week’s sales of which ex-estate comprised 0.9 million Kgs Eastern Brokers said. An Asia Siyaka report said that in the Ex-estate catalogues a wider range of seasonal quality teas on offer this week attracted good widespread demand, Buyers operating for key continental markets such as Germany and the Netherlands bidded actively against those bidding on behalf of clients in Japan. Both BOP and BOPFs moved up in value with price gains in excess of Rs. 50 per Kg being quite common. The range of seasonal Nuwara Eliyas too attracted more demand, but in this instance price gains for the BOPFs were more pronounced.

The market overall for good liquoring teas was bullish with better liquoring Westerns too gaining in value. A wider range of teas in the best and below category came in for more support, thus establishing a more clearly segmented market after a considerable length of time. The tea for price segment remained fully firm and some of the cleaner teas gained Rs. 2 to Rs. 4 per Kg. Any BOPFs of a brighter standard were recognized and often gained a further Rs. 5.

A feature of this week’s Low Grown market was the demand displayed for the better teas, which appreciated irregularly in value. Poorer teas were neglected and where sold lost Rs. 5 to Rs. 10 and more, as a result price differential between the best and the others has now widened to the satisfaction of the producers making well made teas. Low Growns recorded a sale average of Rs. 151.86 last month which is Rs. 7.29 less when compared to Rs. 159.15 recorded in June. This average does not reflect the true market conditions which prevailed in July since most teas in the below best and the poor categories remained unsold. The total national average too dropped from Rs. 137.81 in June to Rs. 134.55 in July.

Specialty teas

The diverse range of Orthodox high and mid grown whole leaf and semi leaf teas on offer each week at the auction are attracting a significant buyer interest. This is on top of continuing good demand for similar Low Growns. Following improved weather conditions the range of bright liquoring specialty teas such as OP, FBOP and Pekoe have moved up sharply in value. Sri Lanka’s traders have done well by creating awareness and market opportunity in the global trade, and this augurs well for the industry. Some of the first teas of the Eastern quality season to attract international attention were the specialty range of Ceylons, and we believe that the price potential of this significant segment is yet to be fulfilled.

"A Forbes and Walker report said, that the much awaited improvement in demand for liquoring teas finally dawned this week." Consequently, there was an improvement in prices particularly for the better liquoring teas. The seasonal interest for Nuwara Eliyas and the Uvas too was evident with many invoices appreciating substantially in value following airmail inquiry. Plainer BOPs at the lower end of the market did not reflect any significant change and continued to sell around last week’s levels. However the BOPFs in this category tended to strengthen particularly towards close of sale. CTC varieties too moved with the trend and often reflected a gain in value. The better teas witnessed improved interest from shippers to UK, Japan, the Continent and also Pakistan whilst the limited availability at the lower end of the market continued to be supported by shippers to CIS and Middle East.

At this week’s Low Grown sale, 2.9 million kgs were on offer. Better made teas continued to attract useful demand and sold at dearer levels. Well made FBOP/FBOPF1s in particular made useful price gains whilst there appeared to be improved demand for the poorer teas. Pekoes too sold at fully firm to dearer levels. Saudi Arabia, CIS, Turkey, Syria and Iran were active.

Quality on offer next week shows a further improvement with a wider selection of improved teas particularly from the Uva/Udapussellawa planting districts which are likely to attract wider buyer interest.

Current crop intake from almost all planting districts are reported to be low and we note from latest reports that a similar trend is being experienced in Kenya as well. Whilst the auction quantities would continue to decline in the near future, quality of teas are likely to improve.