Egyptian GASC bought sunflower oil at the tender for $5/t cheaper than in December
On January 18, the Egyptian state operator GASC held an international tender for the purchase of vegetable oils with delivery in March and payment 180 or 270 days after the opening of the letter of credit.
The number and prices of sunflower oil bids submitted to the tender corresponded to the level of the tender on December 27. 12 lots were offered at $950-1,000 (950-990)/t C&F with 180-day payment and $993-1,206 (1,040-1,300)/t C&F with 270-day payment.
Soybean oil offers decreased from 14 to 5, and prices remained flat at $975-993 (969-1025)/t C&F with 180 days payment and $1035-1210 (1000-1350)/t C&F with 270 days payment days
A decrease in the maximum price of offers indicates the willingness of suppliers to sell their goods.
The cheapest batch of soybean oil was offered by InterGrain SA at a price of $975/t C&F, and sunflower oil was offered by Egyptian African Co at a price of $950/t C&F.
As a result, GASC purchased 4 batches of sunflower oil and payment in 180 days at a price of $900/t C&F, which is $5/t lower than the December 27 tender, as follows:
- 12 thousand tons at TOI Commodities with delivery from February 25 to March 10,
- 12 thousand t in the company TOI Commodities with delivery on March 1-25,
- 12 thousand t at the Mahsul Trading company with delivery on March 1-25,
- 11.5 thousand t in the company Aston Agro Industrial SA with delivery on March 1-25.
Sunflower oil prices remain under pressure from increased offers from Ukraine and the Russian Federation and lower prices for soybean oil, especially given the increase in forecasts for the soybean harvest in Argentina compared to last year from 25 to 50-55 million tons, which will begin to be harvested in March. While in Argentina, most of the harvested soybeans go for processing, Brazil mostly exports its soybeans.
