Egypt bought sunflower oil 9% cheaper than in the previous tender

Over the past month, demand and prices for vegetable oils have been rising against the backdrop of a ban on exports from Ukraine and forecasts of reduced harvests of canola in the EU and soybeans in the US due to drought. Therefore, traders closely followed the tender in Egypt, which was supposed to determine the current price trends.

Egypt's GASC this week announced local and international tenders for the purchase of vegetable oils with delivery September 20 - October 5 and payment on demand or 180-day letter of credit and 270-day letter of credit.

6 offers of sunflower oil with immediate payment at a price of $1006-1123/t C&F (by $80-100/t below the price of the previous tender) and 6 offers of soybean oil at a price of $1115-1142/t C&F (at 85-117 $/t below the price of the previous tender).

As a result, GASC purchased 39.5 thousand tons of sunflower oil at an international tender with immediate payment and delivery from September 20 to October 5 at a price of $990/t C&F, which is 9% lower than in the previous tender on July 26, where 45 thousand were contracted tons of vegetable oils, including 33,000 tons of sunflower oil at a price of $1,080/t C&F and 11,875,000 tons of soybean oil at a price of $1,150/t C&F.

Sunflower oil was purchased in the following lots:

• 12 thousand t in the company TOI Commodities,
• 12 thousand t in the company Green Suppliers,
• 10 thousand tons in Oliva AD company,
• 5.5 thousand tons in the Aston Agro Industrial company.

The winners of the tender were the same companies as in the previous tenders, but the purchase prices dropped sharply.

Forecasts of a good sunflower harvest in Ukraine, Romania and the Russian Federation put pressure on the prices of sunflower oil, especially against the background of an increase in the supply of rapeseed oil in the EU.

Stock palm and soybean oil prices remained steady at $818/t and $1,370/t, respectively, amid buoyant exports from Malaysia and the US for three weeks, while asking prices for sunflower oil delivered to buyers fell from $985 to $920/t. t.

According to surveyors Intertek Testing Services and Amspec Agri, during August 1-15, Malaysia increased palm oil exports compared to the same period in July by 18.9-24.2%, which supported the quotation.

Dry weather in Indonesia may adjust production forecasts, but increased supplies of canola, soybean and sunflower oils will limit the rise in palm oil prices in the near term.