ECONOMYNEXT – Sri Lanka’s low-yield Ceylon tea rose to Rs 1,639.42 a kg at auctions in the third week of July, up from a record Rs 1,629.93 a kg the previous week, as interest rate mistargeted and fluctuated, industry data showed The float caused the currency to drop sharply to surrender demands.
Low plantings averaged $4.54 per kilo at last week’s July 20 auction, up from $2.94 a year ago. Global commodity prices rise due to U.S. money printing, which tends to weaken the dollar.
Data from Ceylon Tea Brokers showed that Low Grown BOP1 grades from the Pothotuwa estate were sold at Rs 4,100 per kg and Pothotuwa OP1 at Rs 4,050 per kg at the July 20 auction.
In Sri Lanka, mercantilists and soft pegs often claim that inflation comes from import prices. However, when the central bank prints money to devalue the currency, the prices of all traded goods, whether imported or exported, rise.
When the Fed prints money, global prices in dollars also rise (commodities boom). Commodity prices are currently booming thanks to the so-called “Powell bubble,” the worst since the Greenspan-Bernanke bubble burst in 2008/2009.
In dollar terms, the national average for sales on June 30 was $3.46 per kilogram, compared with $3.30 per kilogram last year.
Demand for the Low Grown/Tippy variety increased by 2.3 million kg compared to the previous week.
Ex-Estate sold 540,000kg last week, compared to 560,000 the previous week.
low growth
Low Grown attracts the highest prices for Ceylon tea.
Low-yield teas sold for an average of Rs 1,639.42 in the auction week of July 20, down from Rs 1,629.93 the previous week.
In dollar terms, prices also fell to $4.54 a kilogram from $4.51 on June 1.
BOP1’s Select remains the best, while the improvement is below the best, firm to more expensive. Other and inferior species are also completely firm.
OP1 Choosing the best OP1 is firm, while the best and less than the best are slightly easier. Low-end tea remains the same.Below Optimal Relief Rs 60 per kg
OP’s well-made products and sub-optimal cleaners are totally sturdy to more expensive. Other and poorer species are slightly lower.
A well made product from OPA and the best OP cleaners of its kind below. Other and poorer species come later.
A well made product from OPA and the best OP cleaners of its kind below. Other and poorer species come later.
PEKOE/PEKOE1 The selection of the best teas remains the same, while the full range of bold PEK is slightly lower. The best tea below cleanser is totally firm. Others are lower.
BOP finalizes few selected invoices. Others dropped irregularly.
Compared to the previous one, BOPF Select best and best are slightly lower, while others are much lower.
FBOPF/FBOPF1 Few of the clean and rosy varieties remained firm, while all others declined slightly.
high growth
The average auction price at High Grown was Rs 1,270.26, down from Rs 1,217.59.
In BOP tea, Best Western remains the same. Below the best price is 50 rupees more expensive per kilo.Plain type rise
40 rupees or more per kg.
Nuwara Eliya is 30 rupees cheaper per kilo. Uda Pserawa’s voice was firm. Uva increases by 30-40 rupees per kilo.
In the BOPF category, Best Western performed strongly. Less-than-optimal and simpler types are selectively more expensive.Nuwara Eliya
lower. Uda Pussellawa’s following quality is irregular. Uva is mostly firm.
medium growth
This week’s average auction price for medium plantings was Rs 1,192.50, down from Rs 1,159.49 a week ago.
This week, BOPF’s picks were up, while all others were firm.
In BOP1, Select best is down Rs 100 per kg. Low-end teas are hard.
OP1 Well made tea is 200 rupees per kilo. The best and below best price is 50 rupees per kilo. Low-end teas are strong.
And all the better models of the OP1 have added Rs 50 per kg. Worse species fell by the same amount.
OP/OPA is down Rs 50-100/kg overall.
In PEKOE/PEKOE1 – choose the best sheds at Rs 100 per kg while all other sheds are priced at Rs 50 per kg.
FBOP’s Select is best reduced by Rs 200 per kg. The best are firm. Rs 50 per kg below the best price.
Select best for FBOP1 is Rs 150 per kg lower while all others are Rs 50 per kg higher.
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High-yield BP1 rose sharply, while PF1 rose by Rs 20 per kg.
The middle class BP1 is more expensive by Rs 80 per kg and more, while PF1 is more expensive by Rs 50 per kg.
The low growth BPI was generally firm while PF1 rose by Rs 50 per kg.
(Colombo / 31 July 2022)
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