Sri Lanka low-grown tea prices rise in July third week sale
ECONOMYNEXT – Sri Lanka’s low-grown Ceylon teas prices rose to 1,639.42 rupees a kilogram in July third week auction, from the previous week’s record 1,629.93 rupees a kilogram, industry data showed, as the currency collapsed steeply following mistargeted interest rates and a botched float with a surrender requirement.
In the last week’s auction sale on July 20 low grown averaged 4.54 dollars a kilogram up from 2.94 dollars a year earlier. Global commodity prices have moved up due to US money printing, which tends to weaken the dollar.
At July 20 auction Low Grown BOP1 grade from Pothotuwa estate fetched 4,100 rupees a kilogram and Pothotuwa OP1 fetched 4,050 rupees a kilo, Ceylon Tea Brokers data showed.
In Sri Lanka Mercantilists and soft-peggers usually claim that inflation comes from imported prices. However, prices of all traded goods, whether imported or exported go up when the central bank prints money to depreciate the currency.
Global prices also go up in dollar terms (commodity booms) when the US Federal Reserve prints money. At the moment commodity prices are booming due to the so-called ‘Powell Bubble’ the worst since the Greenspan-Bernanke bubble which broke in 2008/2009.
In US dollar terms the national sale average on June 30 was 3.46 dollars a kilogram compared to 3.30 dollars a kilogram last year.
Low Grown leafy/Tippy variety had seen an increased demand selling 2.3 million kilograms compared to unchanged from the previous week.
The Ex-Estate has sold 0.54 million kg last week compared to 0.56 million kg in the previous week.
Low Growns
Low Grown attract the highest prices for Ceylon Tea.
In the July 20 week auction, the Low Grown Tea sale average was 1,639.42 down from 1,629.93 rupees in the previous week.
In dollar terms too prices had slipped to 4.54 dollars per kilogram, from 4.51 dollars in the June 01 sale.
BOP1’s Select best maintained whilst improved below best were firm to dearer. Others and poorer sorts too were fully firm.
OP1 Select best OP1 were firm whilst best and below best were marginally easier. Lower end teas maintained. Below best eased by 60 rupees per kilogram
OP Well-made sorts together with cleaner below best were fully firm to dearer. Others and poorer sorts were marginally lower.
OPA Well-made sorts together with cleaner below best followed OP counterparts. Others and poorer sorts were lower to last.
OPA Well-made sorts together with cleaner below best followed OP counterparts. Others and poorer sorts were lower to last.
PEKOE/PEKOE1 Select best teas maintained whilst full range of bold PEK’s were marginally lower. Cleaner below best teas were fully firm. Others were lower.
BOP Few selected invoices were firm on last. Others were irregularly lower.
BOPF Select best and best were marginally lower whilst others were considerably lower when compared to last.
FBOPF/FBOPF1 Few cleaner and tippy varieties held firm whilst all others marginally declined.
High Grown
The High Grown auction average was 1,270.26 rupees, down from 1,217.59.
In BOP teas, Best Western’s maintained. Below best were firm to 50 rupees per kilogram dearer. Plainer types moved up
by 40 rupees per kg and more.
Nuwara Eliya’s were easier by 30 rupees per kilogram. Uda Pussellawa’s were firm. Uva’s gained by 30-40 rupees per kilogram.
In the BOPF category, Best Western were firm. Below best and plainer types were selectively dearer. Nuwara Eliya’s
were lower. Uda Pussellawa’s were irregular following quality. Uva’s mostly firm.
Medium Grown
The Medium Grown auction average for the week was 1,192.50 rupees, down from 1,159.49 rupees a week before.
This week, BOPF’s select best gained whilst all others were firm.
In BOP1, Select best were lower by 100 rupees per kilogram. Teas at the lower end were firm.
OP1’s well-made teas lower by 200 rupees per kilogram. Best and below best appreciated by 50 rupees per kilogram. Lower-end teas were firm.
While the OP1’s all better types increased by 50 rupees per kilogram. Poorer sorts declined by the same margin.
OP/OPA in general, declined by 50-100 rupees per kilogram.
In the PEKOE/PEKOE1 – Select the best shed by 100 rupees per kilogram whilst all others dropped by 50 rupees per kilogram.
FBOP’s Select best lower by 200 rupees per kg. The best was firm. Below best moved up by 50 rupees per kg.
FBOP1’s Select best lower by 150 rupees per kilogram whilst all others are dearer by 50 rupees per kilogram.
CTC
High-grown BP1s gained substantially while PF1 moved up by 20 rupees per kilogram.
Mid-grown BP1s were dearer by 80 rupees per kilogram & more while PF1 gained by 50 rupees per kilogram.
Low-grown BPIs were generally firm while PF1 gained by 50 rupees per kilogram.
(Colombo/July 31/2022)
