ECONOMYNEXT – Sri Lanka’s low-grown Ceylon teas prices rises to 1,447.39 rupees a kilogram in June third week auction, from the previous week’s 1,455 rupees a kilogram, industry data showed, as the currency continuse to depreciate.
In the last week’s auction sale on June 22 low grown averaged 4.05 dollars a kilogram up from 2.92 dollars a year earlier. Global commodity prices have moved up due to US money printing, which tends to weaken the dollar.
At June 22 auction Low Grown BOP1 grade from Pothotuwa estate fetched 4,300 rupees a kilogram and Pothotuwa OP1 fetched 4,250 rupees a kilo, Ceylon Tea Brokers data showed.
The Premium Flowery grades – FBOPFSp of Alhewana Super estate has fetched 10,500 rupees a kilogram and while Kamarangapitiya estate’s FBOPFExSP1 had fetched 10,000 rupees per kilogram.
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 22 was 3.52 dollars a kilogram compared to 2.92 last year.
At the June 22 sale auction, Low Grown had good demand and Ex-Estate had strong demand, Ceylon Tea Brokers, a Colombo-based tea brokerage said.
Low Grown leafy/Tippy variety had seen an increased demand selling 2.26 million kilograms compared to 2.4 million kilograms in the previous week.
The Ex-Estate has sold 0.67 million kg last week compared to 0.8 million kg in the previous week.
Low Grown attract the highest prices for Ceylon Tea.
In the June 22 week auction, the Low Grown Tea sale average was 1,447.39 up from 1,447.39 rupees in the previous week.
In dollar terms too prices had moved up to 4.00 dollars per kilogram, from 3.8 dollars in the June 15 sale.
BOPF’s Well-made teas were firm to dearer whilst the poorer sorts declined.
BOP1 Select best and the improved below best varieties advanced. Bottom teas were fully firm to
OP1 Select best were lower. Improved below best appreciated whilst the Lower end teas
OP’s Well made sorts were selectively dearer. The balance with the below best were firm. Poorer
PEKOE/PEKOE1 Select best with the range of improved below best remained unchanged. Mixed and lower end
FBOPF/FBOPF1’s overall market moved up for better teas whilst the bottom end teas were lower.
BOP’s Select best and best were firm whilst the bottom were easier.
FBOP/FBOP1 In general, appreciated.
The High Grown auction average was 1,050.77 rupees, up from 982.35 rupees in June 15 sale.
In BOP teas, Best Western’s were firm to 100 rupees per kilogram dearer. Below best gained by 100-200 rupees per kilogram. Plainer teas appreiciated by 80-100 rupees per kg dearer.
Nuwara Eliya’s were unchanged. Uda Pussellawa’s
firm to marginally easier. Uva’s maintained last week levels.
In the BOPF category, Nuwara Eliya’s were unchanged. Uda Pussellawa’s firm to marginally easier. Uva’s maintained last week levels.
The Medium Grown auction average for the week was 995.09 rupees, up from 973.56 rupees a week before.
This week, BOPF in general was dearer by 50 rupees per kilogram .
In BOP1, Select the best and best gained by 100 rupees per kilogram while all others increased by 50 rupees per kg.
The OP1’s Best and below best easier by 50 rupees per kilogram whilst all others were firm
OPA in general declined by 100 rupees per kilogram
In the PEKOE/PEKOE1 – PEKOE category, in general lower by 50 rupees per kilogram.
PEK1’s Select best and best maintained whilst all others declined by 50 rupees per kilogram.
In the FBOP/FBOPF1’s Select best gained by 150 rupees per kilogram while others appreicated by 100rupees per kilogram
High-grown BP1s were mostly firm while PF1 moved up by 100 rupees per kilogram.
Mid grown BP1s were mostly irregular while PF1s were dearer by 80-100 rupees per kilo gram.
Low-grown BPIs were up by 100 rupees per kilogram while PF1 gained by 200 rupees per kilogram.