Against the background of lower world prices, Egyptian GASC purchased a large batch of vegetable oil

The stabilization of prices for vegetable oils on world markets and a sharp drop in prices for Ukrainian sunflower oil immediately intensified demand from importers.

Yesterday, the state-owned Egyptian operator GASC purchased 100 thousand tons of vegetable oils at an international tender 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 C 1368/ton CFR, which is 2 222/ton lower than at the auction on May 11.

In addition, GASC held a tender for the purchase of locally produced vegetable oils, but due to high offer prices, it refused to purchase.

Recall that on May 11, GASC purchased at the tender 29 thousand tons of local soybean oil at a price of 1 1349/ton CFR, which is 9 94/ton higher than the purchase price at the previous tender, as well as 10 thousand tons of imported sunflower oil with delivery in July at a price of C 1590/ton CFR, although the last time it bought it in October at 9 953/ton CFR.

The sharp decline in prices for Ukrainian sunflower oil was a consequence of the crisis in the domestic market, when most processors, due to falling demand from India due to the intensification of the pandemic, faced problems selling stocks of sunflower oil made from expensive raw materials.

Prices for Ukrainian sunflower oil for delivery in June – August fell over the week from 1 1400-1450 to F 1300-1350/ton FOB, but buyers are only interested in oil from the new crop, which is offered at 1 1200-1230/ton FOB for delivery in Q4.

On the Malaysian stock exchange, after Monday's weekend, August palm oil futures fell 2% yesterday to 4,049 ringgit/ton or 9 983/ton on the back of increased production and final stocks, as well as following the fall of SWOT and the Dalian exchange.

However, soybean oil on SWOT yesterday recouped Monday's decline due to high demand for biodiesel and risks to the US soybean crop, so July futures rose by 1.4% to 1 1,585/ton, and December – by 1.4% to.1,463/ton, as the condition of soybean crops at the beginning of the season is much worse than last year and the average 5-year figure.

On the Dalian stock exchange, palm oil futures fell 3.9% to.1,196/ton yesterday, and soybean futures fell 3% to. 1,365/ton, indicating low demand from the world's main importer of vegetable oils.