Sri lanka News – Sri Lanka’s tea prices rose sharply in the July first-week auction with low grown Ceylon tea prices rising to 1,557.90 rupees a kilogram from the previous week’s record 1,507 rupees a kilogram, industry data showed.
In the last week’s auction sale on July 06, low grown averaged to 4.33 dollars a kilogram up from 3.11 dollars a year earlier.
Global commodity prices have moved up due to US money printing, which tends to weaken the dollar.
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 for the month of June was 3.46 dollars a kilogram compared to 2.94 last year.
Low Grown leafy/Tippy variety had seen an increased demand selling 2.3 million kilograms compared to 2.1 million kilograms in the previous week.
The Ex-Estate has sold 0.57 million kg last week compared to 0.56 million kg in the previous week.
Low Grown attract the highest prices for Ceylon Tea.
In the July 06 week auction, the Low Grown Tea sale average was 1,557.90 down from 1,507.62 rupees in the previous week.
In dollar terms prices had rose to 4.33 dollars per kilogram, from 4.19 dollars in the week before.
BOP1’s Select best were firm whilst improved below best varieties advanced. Others and bottom were fully firm to dearer.
OP1 Select best were slightly easier. Improved below best appreciated whilst the lower end teas maintained.
OP’s Well-made sorts together with below best were fully firm to dearer. Others and poorer sorts eased.
PEKOE/PEKOE1’s Select best PEK maintained whilst bold PEK were marginally lower. Select best PEK1s gained. Cleaner teas at the lower end were firm.
FBOP/FBOP1 Select best were slightly easier whilst all others were dearer.
BOP Generally dearer except for select best teas.
BOPF Overall gained.
FBOPF/FBOPF1 in general market moved up.
The High Grown auction average was 1,165.63 rupees, up from 1,122.24.
In BOP teas, Best Western’s were up by 100 rupes per kilogram and more. Nuwara Eliya’s were lower on last. Uda Pussellawa’s were firm to marginally easier. Uva’s were down by 100-150 rupees per kilogram and more towards the end.
In the BOPF category, Best Western’s gained by 100 rupees per kilogram. Below best and plainer types were dearer by 80-100 rupees per kilogram.
The Medium Grown auction average for the week was 1098.60 rupees, up from 1,005.00 rupees a week before.
BOPF Select best and best declined by Rs.50/- per kg whilst all others were firm.
In BOP1, Select best and the lower end teas gained 50 rupees per kilogram. Others dearer by 100 rupees per kilogram.
While the OP1’s Select best, best and the below best increased by 100 rupees per kilpgram whilst the poorer sorts
moved up by 50 rupees per kilogram.
In the PEKOE/PEKOE1 – PEKOE category, Select Best along with the best moved up by 50 rupees per kilogram.
Teas in the below best were firm. Lower end teas
declined by 50 rupees per kilogram.
PEK1’s Select best dearer by 50 rupees. Best and below best increased by 100 rupees per kg. While the lower end teas were firm.
OP/OPA’s Select best appreciated by 50 rupees per kilogram. Best were firm. Below best dropped by 50 rupees per kg
whilst the poorer sorts eased by 100 rupees per kg.
In the FBOP/FBOPF1’s Select best gained by 100 rupees per kg. Best and the Below Best dearer by 150 rupees per kg whilst the plainer sorts up by 50-100 rupees per kilogram.
High-grown BP1s were irregular while PF1 moved up by 50 rupees per kilogram.
Mid grown BP1s and PF1 were mostly irregulary dearer.
Low-grown BPIs were up 80-100 rupees per kilogram while PF1 gained by 100 rupees per kilogram.