Ceylon Tea auction sales reached an all-time high for the calendar month of May, recording a national average of Rs.697.57, surpassing last month’s record.
The latest statistics from the industry showed that May 2020 recorded an Rs.8.39 increase, compared to the Rs.689.18 achieved in April 2020. Compared to the corresponding month of the previous year, May 2020 posted a Rs.158.02 year-on-year (YoY) increase.
Analysis of the elevational averages of May 2020 by Forbes & Walker Tea Brokers showed that High-Growns totalled Rs.645.41 in May 2020, whereas Medium-Growns reached an average of Rs.599.60.
While the sale average for High-Growns expanded by Rs.6.46 from April 2020, Medium-Growns dipped by Rs.13.12 this month. However, the average of the Medium-Growns showed a significant increase of Rs.126.47, compared to May 2019. The Low-Grown average of Rs.744.52 was recorded in May 2020, which surpassed the previous best of Rs.739.82 recorded in April 2020. It also shows a significant increase of Rs.174.82 YoY, when compared to Rs.569.70 of May 2019.
The cumulative analysis of the national sales average for the first five months of the year reached Rs.589.59, a Rs.57.49 increase from the Rs.574.90 recorded in the January-May 2019 period.
High-Growns of Rs.589.59 for the period January-May 2020 have shown an increase of Rs.37.08, compared to Rs.552.51 of January-May 2019, whereas Medium-Growns averaging Rs.556.61 have shown an increase of Rs.53.53, compared to the Rs.503.08 of January-May 2019.
Meanwhile, Low-Growns totalling Rs.669.87 for January-May 2020 showed the highest increase of Rs.68.67, compared to Rs.601.20 of January-May 2019.
Even in US dollar terms, the month and cumulative averages show an increase.
Tea auction sees 6 MnKg come under hammer this week
The tea auctions saw six MnKgs of Ceylon Tea come under the hammer this week, an increase of 0.6 MnKg from the previous week.
Forbes & Walker Tea Brokers in its latest tea report stated there was good general demand at lower levels. “Perhaps the larger volume on offer and the increase in volumes in the forthcoming sales resulted in a lesser intensity in bidding and consequently, an easier market,” the report stated.
Ex-Estate offerings comprised of 0.9 MnKgs, a fairly significant increase from 0.6 MnKgs offerings over the past three months and more.
Forbes & Walker said that the overall quality of offerings too were lower to last, although still continued to have on offer a selection of fairly useful teas.