In the trade of Brazilian ICUMSA 45, many buyers are drawn by prices that defy logic and end up tied up in paperwork and promises. After more than ten years in this market, our view is direct: the greatest risk in sugar trading is not price volatility. It is non-performance.
The market is crowded with mandates and intermediaries who have never handled a bill of lading.
The “instrument flip”
A common scheme uses the buyer’s financial guarantee for something other than moving sugar. The aim is to obtain an SBLC or DLC from a genuine buyer and use it as collateral to open credit lines or issue other instruments. These parties have no proof of product and no allocation at the mills. The buyer is left with committed bank lines and no cargo.
A deliberately small network
We do not claim to have a thousand sources. Over the years we have narrowed our network to a small group of verified Brazilian sources and a select group of buyers with a proven record.
- Real sources: direct mill allocations and a history of loading vessels.
- Real buyers: they understand that a proper procedure protects both sides, not only the seller.
Do not burn the true actors
Brokers who bring “ghost buyers” to real sellers, or the reverse, damage relationships that took years to build. Once a reliable Brazilian source loses trust, that door rarely reopens.
Our commitment
Our focus is delivery. We do not chase every LOI that reaches our desk. We protect our sources and our buyers, and we work so that every instrument issued ends in physical sugar shipped to the buyer. Contract. Guarantee. Delivery.
Read our trading procedure or send your inquiry.
