Egyptian GASC bought sunflower oil at the tender for $20/t more than in January

The Egyptian state operator GASC, against the backdrop of a drop in world prices for vegetable oils, on February 22 held an international tender for the purchase of such oils with delivery in April and payment 180 or 270 days after the opening of the letter of credit.

Compared to the previous auctions on January 18, sunflower oil offer prices decreased from $950-1000/t to $957-985/t C&F with payment of 180 days and from $993-1206/t to $974-1010/t C&F with payment of 270 days, and the number of submitted applications decreased from 12 to 9.

Instead, soybean oil offers increased from 5 to 6, and prices moved from $975-993/t to $1,000-1,050/t C&F with 180 days payment and from $1,035-1,210/t to $1,025-1,075/t C&F with payment of 270 days.

As in the previous tender, there is a decrease in the maximum prices of offers and the willingness of sellers to reduce prices for deliveries with delayed payment.

Soybean oil from Green Suppliers at a price of $1,000 (975)/t C&F and sunflower oil from ADM at a price of $957 (950)/t C&F were the cheapest.

As a result, GASC purchased 60.25 thousand tons of sunflower oil with payment in 180 days at a price of $920/t C&F (which is $20/t higher than the tender price on January 18), including:

• 12 thousand t in the company TOI Commodities with delivery from March 25 to April 15,
• 19 thousand t in the company Green Suppliers with delivery from March 25 to April 15,
• 5.75 thousand t in the company Aston Agro Industrial SA with delivery from March 25 to April 15,
• 12 thousand t in the company TOI Commodities with delivery on April 16-30,
• 11.5 thousand t in the company Aston Agro Industrial SA with delivery on April 16-30.

The prices of sunflower oil for delivery to buyers during the week decreased from $825 to $815/t under the pressure of increased offers from Ukraine and the Russian Federation, as well as falling prices for soybeans and soybean oil.

Ukraine increased the export of sunflower oil compared to the previous week by 49% to 173,000 tons, and in total exported 3 million tons of the USDA forecast of 5.7 million tons in the season.