Egyptian GASC bought sunflower oil for 1 104 / ton cheaper than soy

The global vegetable oil market continues to surprise traders. In January, prices for palm oil equaled those for soybean oil, and in February, soybean oil rose sharply, and prices for it are now тепер 100/ton higher than for sunflower oil.

On February 16, Egypt's GASC held an international tender for the purchase of 40 thousand tons of vegetable oils (including 30 thousand tons of soybean and 10 thousand tons of sunflower) for delivery during April 5-25, as well as an internal tender for the purchase of 3 thousand tons of soybean and 1 thousand tons of sunflower oil for delivery in April.

At the international tender, the cheapest offer was 5.5 thousand tons of sunflower oil at a price of 1 1,463/T C&F and 6 thousand tons of soybean oil at a price of 1 1,567/T C&F, and at the local tender – lots of 8 thousand tons of soybean oil at a price of 1 1,571. 79/T C&F. But after negotiations with traders, the tender for the purchase of local oils was canceled.

At the international tender, GASC purchased 34.5 thousand tons of vegetable oils for delivery during April 5-25, in particular:

• 5.5 thousand tons of sunflower oil from Aston at the price of 1 1463 / ton C & F,
• 11 thousand tons of sunflower oil from Agric SA at the price of 1 1463 / ton C & F,
• 12 thousand tons of sunflower oil from Vittera at the price of 1 1463 / ton C & F,
• 6 thousand tons of soybean oil from Belluno at the price of C 1567/ton C & F.

The purchase price of sunflower oil was $104/ton lower than soybean oil, which will support prices for Ukrainian sunflower oil. This will have a positive impact on the purchase prices of sunflower seeds in Ukraine, which decreased due to reduced demand from processors, who expected lower prices for vegetable oils, especially soybeans, against the background of a record global soybean harvest. But soybean crop forecasts continue to decline, and soybean oil prices are rising, which will provide additional support to the sunflower oil market in the near future.