Brazilian agricultural commodity company teaches sugar importers not to fall for scams, with a simple tip

It is obvious that scammers are becoming more sophisticated and diversifying their approaches, but there is one factor, one single point that you need to focus attention on so as not to fall for scams.

THE SALE PRICE

If you are a beginner buyer, you are going to import sugar for the first time, so you need to be very attentive to the price offered.

Savvy buyers monitor prices on a daily basis through a variety of reliable market sources and very easily identify when a price is false.

There are several factors that influence sugar pricing, such as:

Product specification

The greater the demand for a particular type of sugar, the higher its price. So, in general the price for Icumsa 45 sugar is different from Icumsa 150 and also for Brown Sugar VHP 600-1200. Can it happen that at some point the prices are matched? Yes you can, but it's rare.

Quantity purchased

The price for smaller fractional orders in a 27 metric ton container is quite different from the price of a complete ship with 12500 metric tons, where no container is used. The greater the volume traded, the better the price.

The form of payment

There are companies that give discounts for some forms of payment or charge a percentage % of the total value of the financial instrument. The more secure the payment method, the greater the possibility that the supplier will offer a more competitive price.

The port of destination

Ocean freight varies by destination, so the closer to the supplier country your company is, the better the final price. Example: The shipping price to Ghana, which is closer to Brazil, is cheaper than shipping to Korea.

The most important factor is and will always be the market, as it is the market that dictates the quotations for the futures market and, consequently, for the physical market. So you should keep an eye out for NY and London stock exchanges.

On the ISO.SUGAR website you can follow the FOB quotes of the last 30 days.

WHEN TO TURN ON THE ALERT?

If the price offered is far below market prices, then the supplier is a scammer.

Don't be fooled, because the scammer will try to convince you that he is a great exporter, that he has a huge inventory that needs to flow and will pass as a large company such as Raízen, Tereos, Usina São Martinho, Cargill, among others . He's not going to use the name of an unknown company to pull off a scam.

BRAZILIAN COMPANY SUPPLY AGRICULTURAL COMMODITES (sugar, soy and yellow corn)

This and other alerts are issued frequently by our company. We do this because daily we receive dozens of “buyers” bewitched and deluded by false offers.

False offers are very disruptive to the market, as they bring great distrust of serious suppliers such as Mello Commodity, which has been in the market for over 15 years, and complicates negotiations a lot, as buyers really believe that such prices exist and then guide their expectations about non-existent offers.

Prices like $190 to $290 do not exist, they have been practiced in the past, but they do not reflect the reality in 2021.

Who is Mello Commodity?

It is an agricultural commodities marketing and sales agency that operates exclusively on the internet. It represents the portfolio of 3 suppliers (tradings) that together hold sugar quotas in 27 Brazilian mills.

In summary, Mello Commodity prospects new customers, selects and negotiates the sale until the supply contract is signed, from that moment onwards Trading takes care of the entire operation.

Mello Commodity does not receive any type of payment or financial instrument on behalf of your company, all negotiations will be formalized between BUYER and SUPPLIER, with total transparency.

If you are a serious buyer, want to buy Icumsa 45, Icumsa 150 or Brown Sugar VHP 600-1200 sugar, please request a quote at WhastApp Comercial +55 21 97672-3023 or sales@mellocomodity.com.br

Attention: Mello Commodity is not authorized to negotiate with intermediaries, nor can it offer or pay commission, nor Over Price.

Are there any questions left? Leave it here in the comments that we will respond.