Egyptian GASC bought sunflower oil at a tender for $10/t more than in February

Egypt's GASC held an international tender on March 28 for the purchase of vegetable oils with delivery in May and payment 180 or 270 days after the opening of the letter of credit.

As in previous auctions, 9 applications for the supply of sunflower oil were submitted to the tender. But if at the tender on February 22 the offer prices were $957-985/t C&F with payment in 180 days and $974-1010/t C&F with payment in 270 days, then yesterday oil was offered at $941-1050/t C&F with payment in 180 days and $963-1300/t C&F with payment in 270 days.

If the international companies Bunge and ADM were ready to sell oil cheaper than in the previous tender, the Russian exporters offered a price much higher than the market, especially with delayed payments, although during the bidding they agreed to lower the price from the offered $995-998/t to $930/t C&F.

The number of soybean oil offers decreased from 6 to 4, and the offer prices increased from $1,000-1,050/t to $1,085-1,092/t C&F with payment in 180 days and from $1,025-1,075/t to $1,110-1,195/t C&F with payment after 270 days.

The cheapest offers from ADM were soybean oil at a price of $1,085 (1,000)/t C&F and sunflower oil at a price of $941 (957)/t C&F.

As a result, GASC purchased 3 batches (35.25 thousand) of vegetable oils with payment after 180 days, in particular:

• 17,255 thousand tons of sunflower oil from Aston Agro Industrial SA (5.75 thousand tons for delivery on May 1-15 and 11.5 thousand tons for delivery on May 15-30) at a price of $930/t C&F, which is $10/t exceeds the trading price on February 22,
• 18,000 tons of soybean oil from ADM for delivery on May 15-30 at a price of $1,050/t C&F.

We will remind that on February 18, GASC purchased 60.25 thousand tons of sunflower oil with payment in 180 days at a price of $920/t C&F, which was $20/t higher than the purchase price at the January 18 tender.

According to Trading Economics, during the period between tenders in February and March, the average price of sunflower oil with delivery to customers increased by 4.9% from 815 to 855 $/t against the background of an increase in oil prices during this period by 7, 4%.

May futures for soybean oil from February 22 to March 28 rose 6.6% to $1,057/t, although the market expected lower prices under pressure from increased supply of soybeans from South America.