Last week’s tea auction reported an excellent demand witnessing a strong demand for the ex-estate category and appreciated further this week. Most BOPF are now selling over Rs. 400 (3.50 USD) per kg.

The future offering show a slight increase but are still well below the average output for the period. The market is therefore expected to remain strong.

According to the company the low grown market saw an easier trend for the higher volumes of tea on offer.

With  future offerings  starting to increase, an upward pressure on prices easing off can be expected.

However, the demand for the moment remain strong owing to increased Middle East activity before the start of the Ramadan season.

Low Grown Leafy category: High priced Pekoes were firm while the others appreciated by 10 – 15 USC. Better OP / OPA were firm while the others appreciated by 10 – 15 USC. BOP1 / OP1 appreciated by 8 – 10 USC all round.

Low Grown Small leaf category: Better FBOP / FF1 were irregular around last levels. Other sorts eased by 5 – 10 USC all round.

Ex-estate: Best Western BOP appreciated by 10 – 20 USC while the others gained by 15 – 25 USC. The BOPF appreciated by 20 – 25 USC all round.
CTC: High grown teas appreciated by 15 – 20 USC. The low grown teas gained 10 – 20 USC.

At this week's sale 9,976 lots totaling 5,996,390 kgs were on offer. Compared with the quantity sold and the average price per auction, as of 1st July in this year and last year, average price is been recorded as Rs. 394.43 indicating an increase of Rs. 57. 22 to that of 337.21 in the year 2008.

Meanwhile, the Forbes and Walkers said that the extremely dry weather condition this year in all three major tea producing countries, India, Kenya and Sri Lanka is a rare occurrence and as a result the combined shortfall in production in the three countries augur extremely well for tea prices in the ensuing sales.