Rupee appreciation and higher volumes drags down tea prices

ECONOMYNEXT – Sri Lanka’s Ceylon tea prices declined at an auction on May 17 by 150-200 rupees per kilogram, following a significant increase in offerings and further strengthening of the rupee against the US dollar.

Total auction volume in the last week auction increased to 7.2 million kilograms, Forbes and Walker tea brokers said, recording the highest volume since sale 24 in 2021.

All average tea prices fell and the weekly sale average was down by 65.40 rupees to 1067.57 rupees from 1132.97 rupees, according to data.

High Growns

The High Grown sale average was down by a fast 137.10 rupees to 971.43 from 1,108.53 rupees, Ceylon Tea Brokers said.

Ex-Estate offerings totalled 1.1 million killos, up from 0.95 million kilos a week ago.

Overall quality of teas were lower to last with a greater availability of the offerings comprising of average to plainer quality teas.

Overall, a price fell by 100-150 rupees per kilo and up to 200 rupees per kilo towards the close following the strengthening of the Sri Lankan Rupee during the course of the morning.

OP/OPA – Well-made OP/OPA’s together with lower end were easier 50-100 rupees per kilo and more at times.

PEKOE/PEKOE1- A limited selection of Flavory PEK’s that were available were irregular.

Orthodox leafy PEK/PEK1’s in general were 50-100 per kilo and more at times. Best rotorvane PEK’s were firm to lower by 20-40 rupees per kilo following quality.

Balance remained irregularly lower. Others and poorer sorts declined by 50-100 rupees per kilo and more.

Low Growns

Low Growns comprised of 3.0 Million kilograms.

Leafy, Semi Leafy and Tippy catalogues met with lower demand.

The average price of Low Grown, fell 42.25 rupees to 1,146.25 rupees per kilo in the last auction.

In the Leafy and Semi Leafy catalogues, a selection of select Best OP1’s were firm, whilst the others were lower.

Select Best BOP1’s declined substantially, whilst the balance too were easier to a lesser extent.
OP/OPA’s together with PEK/PEK1’s too declined.

Medium Growns

The Medium Growns sale average fell 55.30 rupees to 928.28 rupees last week.

BOP fell by 100-150 per kilo.

Better sorts of BOPF declined 50-100 rupees per kilo, whilst the others were substantially down.

OP/OPA in general were down 50-100 rupees and more at times.

PEKOE/PEKOE1 were also down by 50-100 rupees per kilo. (Colombo/May 21/2023)