Buy Sugar From Brazil in Containers or Full Vessels

The world sugar business has become a very difficult and tricky thing. Lots of disonest offers, absurd volumes and unreal prices. It’s a big mess.

We are in the sugar market since 1992, and never had any quarrel related to our suppliers. They have always performed all sales contract, never failed.

The secret (if it would be a secret) for buyers to be safe in commodities, is related to the supplier. One cannot buy from any one, just because he is offering low prices, or so. One must be sure about the supplier’s capability of performing the deal. Suppliers have to be 100% trustworthy.

Brazilian annual production

Many buyers do not know that Brazil is a large sugar producer (about 40 million tons), but with very low production of white refined sugar, Icumsa 45 (not much more than 1.1 million tons).

We should also know that Icumsa 45 is disputed by more than 20 large trading companies, that are ready to put front money to assure supplies. Therefore, third parties, new comers, will not be able to get large quantities. Most Icumsa 45 is committed to those traders.

Most Brazilian sugar for export is raw brown (VHP), for the refineries to produce Icumsa 45.
Brazil also exports large volumes of white crystal sugar, Icumsa 150 (which is perfect for human consumption), mostly in containers.

Types/grades of sugar

Brazil can supply following sugars:

White Refined Sugar

• polarization min. 99.80%
• colour max. 45 Icumsa
• ash max. 0.04%
• moisture max. 0.04%

White Crystal Sugar

• polarization min. 99.70%
• colour max. 150 Icumsa
• ash max. 0.08%
• moisture max. 0.08%

Raw Brown Sugar (VHP)

• polarization from 99.00% to 99.50%
• colour between 450 and 1200 Icumsa
• ash max. 0.15%
• moisture max. 0.15%

Packing

• big bags of 1000 kg
• 50 kg pp bags
• 25/30 kg pp bags
• 1 kg, 2 kg and 5 kg plastic bags

Usual packing is 50 kg bags, but under special request we can check other sizes, like 1000 kg big bags; 25 kg, and small household bags of 1 kg, 2 kg, and 5 kg.

It’s not possible to supply sugar in paper bags. No supplier for that.

Brand/Mark

Can be with suppliers’ brand, or with buyers’ brand, to be agreed.

Quantity

In our specific case, we prefer to supply smaller volumes (from 150 to 1500 mt per shipment) in containers (with 27 tons net each). It’s safer and easier to get the sugar.

Eventually, we can work full ship loads (not large volumes), but this is not our goal.

Shipment

Within 10/20 days after receipt of payment instrument.

Shipping Time

It depends on the quantity, the destination port, and the period of the year (whether it is harvesting season or intercrop). Anyways, average is 20/25 days from business conclusion.

Payment

Most Brazilian exporters require a downpayment (from 20% to 40%) to accept any order. Balance can be against fax of shipping documents, or in some cases, irrevocable, non transferable and confirmed LC at sight. We will not find a supplier to accept 100% LC, as it used to be till early this year.

Prices

This is an important point. Of course, it’s not true that some suppliers can offer sugar much under the Stock Exchange levels. This information is false. Just the opposite, now there is a premium to be added to the Stock Exchange quotation.

Being a commodity, sugar price is subject to the daily market levels. So, there will be a price for each inquiry, and it will be an indiction, for final price will be stated when buyer is ready to place firm and irrevocable order.

London Stock is for Icumsa 45, and New York for other grades, including Icumsa 150, that receives a premium to be added, to stay some US$15.00/20.00 under Icumsa 45.

Basic important points

1. We are not producers and we are not exporters. We are brokers, commissioned agents, with 30 years experience in sugar export from Brazil.
2. Due to the above, we cannot pay commission to other brokers.
3. We do only small volumes, minimum 260 tons and maximum 1500 tons per shipment, in containers.
4. Usual payment in case of containers loads is 20%/30% in advance, by TT, and balance against copy of shipping documents. Very seldom we find an exporter to accept LC, and when it happens, it is only for the balance.
5. Our suppliers/exporters (all big and reliable companies) do not like do deal with new comers, unexperienced people in the sugar business. They want us to deal with people who are in the sugar market, to be able to establish a long term business relationship. This means that to get good answers, buyers must respond to the following questions:a) buyers’ main business activity;b) are they direct importers, or brokers, or distributors?c) what buyers know about sugar?d) what will be their buying capacity?e) what type/grade of sugar do they deal with?f) what is the target price for their market?

OUR PROPOSAL is to assist foreigners to buy sugar in Brazil, in a really safe way.
We also would like to say that we negotiate the deals with buyers and sellers, but any Pro Forma Invoice, contract, and any payment, will be directly from sellers to buyers and from buyers to sellers. We do not issue any sales document, and we do not receive any payment.