Egyptian GASC purchased only 10 thousand tons of sunflower oil at the tender, but cheaper than in July

Yesterday, the Egyptian GASC held two tenders – for the purchase of 30 thousand tons of local soybean oil and 10 thousand tons of imported sunflower oil with delivery on October 5-25 and payment within 180 days.

For the supply of soybean oil, offers were received from the domestic market in batches of 3-20 thousand tons at a price of 1 1369-1380/ton.

Two proposals were received from Black Sea producers for the supply of sunflower oil:

• batch of 10 thousand tons at the price of C 1336/ton CIF with payment on arrival,
• a batch of 10 thousand tons at the price of C 1345/t CIF with payment within 180 days.

Offer prices were significantly higher than purchase prices for delivery in September.

As a result, GASC refused to buy soybean oil on the local market due to high offer prices, but purchased 10 thousand tons of sunflower oil with delivery in October and deferred payment at a price of C 1,333/ton of CIF, which is much more expensive than at the tender on June 22.

Recall that on June 22, GASC purchased such batches of oil for delivery in September:

• 60 thousand tons of imported soybean oil at the price of 1 1184 / ton CFR, which is 1 115/ton CFR lower than at the auction on June 8,
• 10 thousand tons of Egyptian soybean oil at the price of 1 1200 / ton CFR,
• 10 thousand tons of sunflower oil at the price of 1 1133/ton CFR, which is 2 235/ton CFR lower than at the auction on June 8.

And at the tender on June 8, GASC purchased 100 thousand tons of vegetable oils for delivery in August, in particular:

• 60 thousand tons of imported soybean oil at a price of C 1300/ton CFR, which is 4 44/ton higher than at the previous tender,
• 40 thousand tons of sunflower oil at the price of 1 1368/ton CFR, which is 2 222/ton CFR lower than at the auction on May 11.

Supply prices of Ukrainian sunflower oil for two to three weeks increased from 1 1200-1250/ton to F 1300-1330/ton FOB for deliveries in October-November amid lower forecasts of the sunflower harvest in Russia.