GASC buys 69k mt soyoil but snubs sunoil

Egypt’s state buyer GASC bought 69,000 mt soyoil at a tender that closed Thursday, with 39,000 mt purchased from domestic suppliers and 30,000 mt from international sellers, market sources told Agricensus.

GASC booked 30,000 mt of soyoil from ADM for arrival between January 15 and 31 at a price of $1,468/mt CFR and on payment at sight terms.

The state buyer paid the same price as the previous international vegoil tender, which closed October 20 when the agency purchased 25,000 mt of overseas soyoil from Viterra, for delivery between December 5-25

The local volume will be delivered by six domestic companies, with the largest volumes of 12,000 mt and 10,000 mt being distributed between AlMagd and Soyven, respectively.

At the same time, Safa will deliver 6,000 mt and Alex will supply 5,000 mt of soyoil, while SPM and Evergreen bought equal volumes of 3,000 mt each.

The booked volumes are for arrival between January 5-25.

The state buyer paid $48.61/mt, or 3.5% at $1,426.40/mt, more than at its previous domestic vegoil tender, which closed November 16 with it purchasing 8,000 mt of local soyoil.

The result came as a surprise to market participants who were expecting volumes agreed only from the domestic market.

“They had to buy at any case, they pushed local sellers to increase their quantity. In the end, they had to accept the International offer at $1,468/mt to cover their needs,” said Ahmed Hawary of AlMagd Group Investments.

However, in this tender, GASC was unable to buy sunflower oil due to a lack of competitive bids, with the last purchase of 12,000 mt of sunflower oil on November 16.

Full details of GASC’s buying can be found on the Agricensus Tenders Dashboard.