The Egyptian tender showed that the vegetable oils are high for buyers
Traders expect the outcome of the next Egyptian tender, which GASC planned to buy 30 thousand tons of soy and 10 thousand tons imported sunflower oil.
In the first half of August, GASC has purchased the tender 64.5 thousand tons soybean oil local production with supply 1-25 October at a price 748,27-792,42 $/t CFR, and yesterday held another tender for the purchase of imported vegetable oils.
Usually these tenders the purchase price of imported oil is lower than prices on the domestic market. However, against the background of rising world prices for vegetable oil prices were too high, so GASC was not able to purchase the planned volumes.
Last imported oil GASC has purchased the tender in March, when world prices for agricultural products fell sharply. Then it contracted 60 thousand tons of soybean oil at the price 634,5 $/t CFR and 60 thousand tons of sunflower oil at a price 676,5 $/t CFR.
In June and July, GASC has cancelled two tenders for the purchase of imported vegetable oils for too high prices.
At yesterday's tender, GASC bought only 11 thousand tons of sunflower oil from the company Tradefield delivery October 25 – November 20 at a price of 788 $/t CFR, which 111,5 $/t higher than the purchase price of the tender and the March 14 $/t CFR higher than the proposals that were submitted for the tender of July.
Submitted for tender proposals of soybean oil was 43.5 $/t CFR is more expensive than the cheapest offer at the July tender, and 53.8 $/t CFR is more expensive than the price that GASC paid on August 9 for 64 thousand tons of soybean oil.
Futures soybean oil in Chicago yesterday, rose another 1.5% to 6-month high of 705,3 $/t on the background of decreasing supplies of soy oil in the US, although prices of palm oil remained unchanged.
Quotations of vegetable oils has reached the highest in the season level, so increasing sentences new crop prices begin to fall, and buyers are in no hurry contractualise in anticipation of a seasonal decline in prices.
