Notice-Even though the sugar commodity is used around the world, its contract and price are determined in a few places. The sugar commodity is traded in the International Exchange (ICE), Kansai Commodities Exchange (KEX), Brazilian Mercantile and Futures Exchange (BF&M), National Commodities and Derivatives Exchange (NCDEX), National Commodity Exchange Limited (NCEL), Zhengzou Commodity Exchange (CZCE) And the Multi Commodity Exchange (MCX). There the sugar quotes are decided, and based on them traders perform their trades.
1 – The price of a trial order and the price of a 12-month contract may differ. Considering that the quantity of the trial order is way less than the monthly order, all suppliers will need to compensate for the logistics that will be incurred for transporting lesser quantity.
2. Guarantee is an important requirement. There has been numerous times that Buyers have reneged on their contracts leaving the Suppliers with great financial losses.
3. If your company intends to import sugar from IC 45 and is not able to offer a guarantee SBLC issued by a reliable bank top 25/50, it is almost certain that the Brazilian supplier will not meet your demand.
To produce sugar in Brazil, many mills rely on loans at banks. Adding to this situation the enormous tax burden and Brazilian logistical cost, at the end of the sale the sugar mill gets a very small profit, or no profit and indebtedness. In this scenario, no sugar industry will give you a deadline for payment, the sale of sugar will materialize with cash payment, upon presentation of the shipping documents.
4. Financial instruments.
Every year, malicious shoppers negotiate huge volume purchases believing they will be able to pay for their purchases with untrustworthy financial instruments issued by brokerage firms. Your company will not be able to complete trading as financial instruments need to be issued or at least recognized by a TOP 25/50 bank. Save your time! That will not work.