Egypt purchased sunflower oil at a 9% lower price compared to the previous tender.

Over the last month, demand and prices for vegetable oils have been increasing due to the export blockade from Ukraine and forecasts of reduced rapeseed harvest in the EU and soybean harvest in the US due to drought. Therefore, traders closely monitored the tender in Egypt, which was expected to determine the current price trends.

This week, the Egyptian GASC announced local and international tenders for the purchase of vegetable oils with deliveries scheduled from September 20th to October 5th, with payment on demand or via 180-day and 270-day letters of credit.

For the international tender, there were 6 offers for sunflower oil with immediate payment at prices ranging from $1006 to $1123 per ton C&F (which is $80-$100 lower compared to the previous tender), and 6 offers for soybean oil at prices ranging from $1115 to $1142 per ton C&F (which is $85-$117 lower compared to the previous tender).

In the end, GASC purchased 39.5 thousand tons of sunflower oil with immediate payment and delivery from September 20th to October 5th at a price of $990 per ton C&F, which is 9% lower than the previous tender held on July 26th. In that tender, 45 thousand tons of vegetable oils were contracted, including 33 thousand tons of sunflower oil at a price of $1080 per ton C&F and 11.875 thousand tons of soybean oil at a price of $1150 per ton C&F.

The sunflower oil was purchased by the following companies:

• 12 thousand tons by TOI Commodities,
• 12 thousand tons by Green Suppliers,
• 10 thousand tons by Oliva AD,
• 5.5 thousand tons by Aston Agro Industrial.

The winners of the tender were the same companies as in the previous trades, but the procurement prices significantly decreased.

Forecasts of a good sunflower harvest in Ukraine, Romania, and Russia are putting pressure on sunflower oil prices, especially against the backdrop of increased offers of rapeseed oil in the EU.

Exchange prices for palm and soybean oil remain stable at $818 per ton and $1370 per ton respectively for three weeks, due to active exports from Malaysia and the US. Meanwhile, demand prices for sunflower oil have dropped from $985 to $920 per ton.

According to surveyors Intertek Testing Services and Amspec Agri, Malaysia increased palm oil exports by 18.9% to 24.2% during August 1-15 compared to the same period in July, which supported the quotations.

Dry weather in Indonesia could potentially affect production forecasts, but the increase in offers for rapeseed, soybean, and sunflower oil is expected to limit the growth of palm oil prices in the near future.