Tea prices buoyant
The Colombo tea auction this week was buoyant with a good demand fetching improved prices and some of the peak shipments due for the winter season set to go through for markets in North Africa and West Asia.
Increased demand totalled 5.9 million kg of tea sold at the auction this week in time for the pre-holiday period and even in Europe the stocks have generated improved prices as there could be a surge in buying as most people are in quarantine.
There have been issues due to the pandemic on purchasing markets and there have been fluctuations on certain grades depending on the markets they are reaching and the preference for hot beverages during the cold season.
With rupee stabilizing against the dollar, prices have averaged though some of the importing countries are under pressure due to weakening economies.
Ex-Estate offering totalled 0.75 million/kg in comparison to the 0.6 million/kg on offer the previous week brokers reported. Demand centered around teas at the lower end of the market, whilst teas in the higher price bracket continued to weaken.
Select high priced BOP/BOPF’s in the Best Western category declined by Rs.20-40 per kg whilst the others were firm and lower to a lesser extent as buyers followed quality closely. CTC teas continued to meet with strong demand. Teas from the High and Medium Grown regions sold at firm rates with price fluctuations reflective of quality.