Egyptian GASC acquired a large batch of vegetable oils amid lower world prices

Yesterday, the Egyptian GASC agency held two tenders: for the purchase of local and imported vegetable oils, as a result of which it purchased 63 thousand tons for delivery from October 20 to November 5 at lower prices than at previous tenders.

Seasonal declines in prices for sunflower and soybean oil are increasingly boosting importers in purchasing, but importers expect further price declines.

The bid prices for this tender were lower than the bid prices for the tender on August 19, 2021. Sunflower oil was offered at prices of 1267 and 1323 C/T CIF with payment within 180 days, imported soybeans at prices of 1255-1340 C/T CIF, while local soybean oil was offered at higher prices of 1305-1364 C/T CIF.

As a result of the tender, GASC acquired:

• Viterra has 19 thousand tons of Ukrainian sunflower oil for delivery in October and payment upon delivery at a price of C 1,240/ton CIF, which is 9 93/ton cheaper than August 19, 2021;
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• 10 thousand tons of imported soybean oil from Belluno at the price of 1 1310/ton CFR with payment upon delivery.
• 34 thousand tons of local soybean oil from Watanya, C3M and Maged companies at a price of about 1 1304 / ton CFR.

Falling prices for palm and soybean oils continue to put pressure on sunflower oil prices. October palm oil futures in Malaysia rose slightly by 1.5% yesterday, offsetting part of the 4.5% drop over the past week, and are trading at 4,241 ringgits/ton, or.1,010/ton.

December soybean oil futures on the Chicago Stock Exchange also rose 1.8% to 1 13,051/ton yesterday, also recovering from the fall.

Supply prices of Ukrainian sunflower oil decreased to the level of F 1250-1280/ton FOB for deliveries in October-November, but demand prices are declared at the level of about.1200/ton FOB.

The Sunflower market expects more information about the sunflower harvest in Russia, as the first data show that the yield at the start of harvesting is low 1.46 t/ha, but only 244.5 thousand hectares were threshed and 356.5 thousand tons were threshed in the south of Russia.