August 7 Tender Results
On August 7, the Egyptian General Authority for Supply Commodities (GASC) held an international tender to purchase 40,000 tons of vegetable oils, including 30,000 tons of soybean oil and 10,000 tons of sunflower oil, with delivery scheduled between October 15 and November 15 and immediate payment terms.
Increased Offers and Lower Prices
Compared to the previous tender on July 18, the number of offers for sunflower oil increased from 10 to 14, and prices decreased slightly, ranging from $1,050 to $1,095 per ton C&F, down from $1,054 to $1,163 per ton. Russian exporters were particularly active in lowering their prices. Meanwhile, offers for soybean oil decreased from 10 to 8, with prices falling to a range of $1,005 to $1,092 per ton C&F, compared to the previous range of $1,066 to $1,110 per ton.
Sunflower Oil Purchases
As a result of the tender, GASC purchased 36,600 tons of sunflower oil from Moldovan and Russian suppliers at a price of $1,018 per ton C&F. This price is $4 per ton higher than the purchase price at the July 18 auction. The purchases were divided among three companies:
- 12,600 tons from TOI Commodities, with delivery scheduled between October 15-31.
- 12,000 tons from Green Suppliers, also for delivery between October 15-31.
- 12,000 tons from Aston Agro Industrial, with delivery between November 1-15.
Soybean Oil Rejection
Despite the lower prices for soybean oil compared to sunflower oil, GASC opted not to purchase any soybean oil in this tender.
Recent GASC Purchases
GASC has been actively acquiring vegetable oils throughout the year:
- On July 18, GASC purchased 20,000 tons of sunflower oil at $1,013.99 per ton C&F.
- On June 13, it secured 5,500 tons of sunflower oil with immediate payment at $1,073.9 per ton C&F.
- On May 9, GASC acquired 73,000 tons of sunflower oil at $1,000 per ton C&F and 29,000 tons of soybean oil at $994 per ton C&F, with payment terms extending to 180 days.
- On March 28, GASC purchased 28,755 tons of sunflower oil at $930 per ton C&F and 18,000 tons of soybean oil at $1,050 per ton C&F.
- On February 18, GASC secured 60,250 tons of sunflower oil at $920 per ton C&F, which was $20 per ton higher than the price at the January 18 tender.
Market Trends
Between the tenders on July 18 and August 7, the average price of sunflower oil delivered to buyers fell by 0.8% to $896 per ton. Meanwhile, December soybean oil futures in Chicago dropped by 8.2% to $903 per ton, and October palm oil futures in Malaysia declined by 6% to $820 per ton.
The latest GASC tender results highlight the continuing volatility in the global vegetable oil market. With sunflower oil prices slightly rising in this round of purchases, while soybean oil was left out despite lower prices, the Egyptian authority is clearly navigating a complex and shifting landscape. The decisions made in this tender reflect the broader trends in global commodity markets, where price fluctuations and supply chain considerations are crucial in shaping procurement strategies.