•  ICPO (download)
• BCL (download)

After you complete these documents, please first send them to us as email attachment to info @ ic45.com.

NOTE: Our anti-spam email software can sometimes missplace an important email into spam folder. When you send us your ICPO and BCL, please also contact us here to let us know that we should be expecting your documents. 

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SOFT OFFER FOR BRAZILIAN SUGAR ICUMSA 45

ON BEHALF OF THE SELLER, WHOM WE REPRESENT, OUR COMPANY RAW POLYMERS LTD. HEREBY STATES THAT SUBJECT TO A PURCHASE AND SALE AGREEMENT BEING FULLY EXECUTED, WE ARE PREPARED TO SELL REFINED CANE SUGAR AS PER THE SPECIFICATIONS AND UNDER THE TERMS AND CONDITIONS STATED HEREIN.

SPECIFICATION:

COMMODITY:                            REFINED CANE SUGAR ICUMSA 45 RBU
POLARIZATION:                       99.8% MIN
ASH CONTENT:                          0.04 % MAX
MOISTURE:                                 0.04% MAX
ICUMSA RATING:                      ICUMSA 45 RBU
SOLUBILITY:                              100% DRY & FREE FLOWING
RADIATION:                                NORMAL CERTIFIED without presence of cesium or iodine.
COLOR:                                          SPARKLING WHITE
GRANULATION:                         MEDIUM TO FINE CRYSTAL
CROP:                                            LATEST CROP (2007, 2008)
COUNTRY OF ORIGIN:            BRAZIL

PACKING & MARKING:

ALL SUGAR TO BE PACKED IN FIFTY (50) KILOGRAM NET WEIGHT IN NEW POLYLINED ETHYLENE AND POLYPROPYLENE BAGS, OR INTERNATIONALLY ACCEPTABLE EQUIVLENT.

QUANTITY:

AT SELLER’S OPTION TOTAL OF FIFTY MILLION (50,000,000) METRIC TONS. THREE MILLION SIX HUNDRED THOUSAND (3,600,000) METRIC TONS CAN BE SHIPPED PER YEAR WITH A POSITIVE OR NEGATIVE WEIGHT TOLERANCE TO A MAXIMUM OF FIVE PERCENT PER SHIPMENT.

PRICE:

USD $165.00 (HUNDRED AND SIXTY FIVE U.S. DOLLARS) PER METRIC TON CIF ANY “US NON-SANCTIONED” SAFE WORLD PORT.

CONTRACT PERIOD & DELIVERY SCHEDULE:

DELIVERY TO COMMENCE WITHIN TWENTY EIGHT TO FORTY FIVE (28 – 45) DAYS OF ACTIVATION OF BUYER’S FINANCIAL INSTRUMENT(S) AND FURTHER SUBJECT TO SHIPPING AVAILABILITY AND INFRASTRUCTURAL CONDITIONS AT THE BUYER’S DESIGNATED PORT(S) OF DISCHARGE. AVERAGE MONTHLY SHIPMENTS OF THREE HUNDRED THOUSAND (300,000) METRIC TONS MONTHLY IN MINIMUM TWENTY FIVE THOUSAND (25,000) METRIC TON VESSELS WILL CONTINUE THROUGH HUNDRED AND SIXTY SEVEN (167) CONSECUTIVE MONTHS OR UNTIL THE FULL QUANTITY IS SHIPPED.

INSPECTION:

SGS SHALL, AT LOADING PORT AND AT SELLERS COST, INSPECT THE RESPECTIVE SHIPPING VESSEL(S) AND SHALL ISSUE ITS CERTIFICATE OF:
- HOLD AND HATCH CLEANLINESS AND CERTIFICATE OF RADIOACTIVITY.
- QUANTITY AND QUALITY CERTIFICATE INDICATE THE RESULTS FOR THE INDUSTRY STANDARD TEST AND TALLY’S.
- WEIGHT PER SHIPMENT
- SOFT OFFER FOR BRAZILIAN SUGAR ICUMSA 45
- SPECIFICATION OF GOODS AS STATED IN THIS CONTRACT.

PAYMENT TERMS AND CONDITIONS:

THROUGH A FINANCIAL INSTRUMENT SATISFACTORY TO THE SELLER’S BANK AND BE IN THE FORM OF:

1.) AN IRREVOCABLE, NON-TRANSFERABLE, DIVISIBLE, CUMULATIVE DOCUMENTARY LETTER OF CREDIT (DLC), ISSUED / CONFIRMED BY A TOP 25 WORLD BANK OR A BANK ACCEPTABLE TO THE SELLER, FOR AN AMOUNT CORRESPONDING TO THE VALUE OF ONE (1) MONTHS SHIPMENTS, BEING US$ 57,000,000 (FIFTY SEVEN MILLION U.S. DOLLARS), REVOLVING MONTHLY ‘BY AMENDMENT’ UNTIL THE TOTAL QUANTITY OF SUGAR CONTRACTED FOR IS SHIPPED. AFTER EACH DRAWING THE AMOUNT UTILIZED WILL BE REINSTATED BY AMENDMENT AND THE EXPIRATION DATE SHALL BE EXTENDED BY AMENDMENT A MINIMUM OF FIFTEEN (15) CALENDAR DAYS PRIOR TO THE EXISTING EXPIRATION DATE.

THIS FINANCIAL INSTRUMENT IS TO BE LODGED WITH THE SELLER’S BANK WITHIN FIVE (5) INTERNATIONAL BANKING DAYS OF SIGNING THE HARDCOPIES OF THE CONTRACT AND WILL REMAIN WITH SELLER’S BANK, PAYABLE 100% AT SIGHT, BY FIRST PRESENTATION AT THE COUNTER OF SELLER’S BANK OF ALL REQUIRED SHIPPING DOCUMENTS FOR EACH VESSEL.

THE FOLLOWING FINANCIAL INSTRUMENT WILL ACCOMPANY THE DLC TO SECURE THE QUANTITY FOR THE QUOTED PRICE AND AS A GUARANTEE TO THE BUYER’S FULFILLMENT OF THE WHOLE CONTRACT:

2.) AN UNCONDITIONAL, UNENCUMBERED CASHED BACKED STANDBY LETTER OF CREDIT (SBLC) ISSUED OR CONFIRMED BY A TOP 25 WORLD BANK OR A BANK ACCEPTABLE TO THE SELLER, WRITTEN IN THE AMOUNT CORRESPONDING TO THE VALUE OF TWO (2) MONTHS SHIPMENTS WHICH, UNLESS DRAWN AGAINST INCASE OF THE BUYER BEING IN “BREACH OF CONTRACT” IS TO BE RETURNED AFTER THE LAST VESSEL UNDER THE CONTRACT IS SHIPPED AND PAID FOR.

ALL FINANCIAL INSTRUMENTS MUST BE ADVISED THRU SELLER’S BANK AND PAYABLE AT THE COUNTERS OF THE SELLER’S BANK.

THE FINANCIAL INSTRUMENTS ARE SUBJECT TO THE 2007 REVISION OF UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS, UCP 600, (ICC PUBLICATION NO. 600).

SELLER’S PERFORMANCE BOND:

AFTER RECEIVING BUYER’S NON-OPERATIVE FINANCIAL INSTRUMENTS AS REQUIRED WITHIN THE CONTRACT THE SELLER WILL PROVIDE THE BUYER WITH A PERFORMANCE BOND WRITTEN IN AN AMOUNT EQUAL TO TWO PERCENT (2%) OF THE REPLACEMENT VALUE OF THE AVERAGE MONTHLY SHIPMENT. THE PERFORMANCE BOND SHALL BE ISSUED IN THE FORM OF A STAND BY LETTER OF CREDIT IN FAVOR OF BUYER AND WILL BE IRREVOCABLE AND VALID TROUGHOUT THE DURATION OF THIS AGREEMENT PLUS 30 (THIRTY) DAYS.

CONTRACT PROCEDURES:

1.) BUYER WILL COMPLETE THE BUYER’S BANKING INFORMATION, SIGN AND SEAL AND RETURN THE FULL CORPORATE OFFER TO THE SELLER.

2.) WITHIN THREE (3) BANKING DAYS THE SELLER WILL PROVIDE THE DRAFT CONTRACT TO THE BUYER FOR THEIR CONSIDERATIONS. THE BUYER MAY MAKE ANY CHANGES FOR THE CONSIDERATION OF THE SELLER AND EXCHANGE DRAFTS UNTIL A FINAL DRAFT CONTRACT IS FOUND ACCEPTABLE BY BOTH THE BUYER AND THE SELLER. UPON COMPLETION OF NEGOTIATIONS BETWEEN THE BUYER AND THE SELLER THE BUYER WILL SIGN AND SEAL THE DRAFT CONTRACT AND RETURN IT TO THE SELLER.

3.) WITHIN THREE (3) BANKING DAYS OF THE RECEIPT OF THE SIGNED DRAFT CONTRACT THE SELLER WILL SIGN AND SEAL AND RETURN THE DRAFT CONTRACT TO THE BUYER. THIS DRAFT CONTRACT WILL BE EXCHANGED BY WAY OF E-MAIL, FAX, AND OR ELECTRONIC FACSIMILE AND WILL REMAIN ENFORCEABLE UNTIL HARDCOPIES ARE EXCHANGED.

4.) WITHIN FIVE (5) BANKING DAYS OF THE SELLER RETURNING THE SIGNED AND SEALED DRAFT CONTRACT TO THE BUYER, THE BUYER’S BANK WILL SWIFT BY MT-799 THAT THE BANK ON BEHALF OF THEIR CLIENT IS RWA TO ISSUE THE BUYER’S FINANCIAL INSTRUMENT AS PER THE DRAFT TEXT OF THE FINANCIAL INSTRUMENT ATTACHED AND ASK FOR APPROVAL OF THE SELLER’S BANK.

5.) WITHIN FIVE (5) BANKING DAYS OF THE SELLER RETURNING THE SIGNED AND SEALED DRAFT CONTRACT TO THE BUYER, THE BUYER WILL PROVIDE THE SELLER WITH HIS PROPOSED SHIPPING SCHEDULE FOR THE REFINERY’S/SUPPLIER’S APPROVAL.

6.) THE SELLER’S BANK WILL RESPOND BY SWIFT MT-799 THAT THE BANK IS RWA TO ISSUE THE SELLER’S POP AND PB AND ACCEPTS / AMENDS THE TEXT OF THE FINANCIAL INSTRUMENT.

7.) THE SELLER WILL, UPON RECEIVING THE BANK’S APPROVAL OF THE DRAFT TEXT OF THE BUYER’S FINANCIAL INSTRUMENT AND UPON RECEIPT OF AND APPROVAL OF THE BUYER’S SHIPPING SCHEDULE BY THE REFINERY/SUPPLIER, PRODUCE SIX (6) SIGNED HARDCOPIES OF THE CONTRACT WITH THE ATTACHED ANNEX “A”, “B” AND “C” THEN SIGN AND SEAL EACH HARDCOPY AND EXPRESS COURIER THEM TO THE BUYER.

8.) THE BUYER, WITHIN TWO (2) DAYS OF RECEIVING THE HARDCOPIES OF THE CONTRACT WILL INITIAL EACH PAGE, SIGN AND SEAL EACH HARDCOPY AND EXPRESS COURIER FOUR (4) HARDCOPIES BACK TO THE SELLER.

9.) WITHIN TWO (2) BANKING DAYS OF THE BUYER’S RECEIVING THEIR SIGNED HARDCOPIES OF THE CONTRACT, THE BUYER’S BANK WILL SWIFT THE NON-OPERATIVE FINANCIAL INSTRUMENT IN THE APPROVED TEXT TO SELLER’S BANK.

10.) WITHIN FIVE (5) BANKING DAYS OF THE RECEIPT OF THE BUYER’S NON-OPERATIVE FINANCIAL INSTRUMENT THE SELLER’S BANK WILL SWIFT THE PROOF OF PRODUCT IN RESPONSE. THE FORM OF THE PROOF OF PRODUCT WILL INCLUDE THE FOLLOWING DOCUMENTS, IF APPLICABLE:

- LICENSE TO EXPORT ISSUED BY THE BRAZILIAN GOVERNMENT
- APPROVAL TO EXPORT ISSUED BY THE BRAZILIAN GOVERNMENT
- STATEMENT OF AVAILABILITY OF THE PRODUCT
- WAREHOUSE RECEIPT AND/OR
- REFINERY COMMITMENT TO PRODUCE THE PRODUCT;
- CHARTER PARTY AGREEMENT(S) TO TRANSPORT THE PRODUCT TO DISCHARGE PORTS.

11.) WITHIN FIVE (5) INTERNATIONAL BANKING DAYS AFTER RECEIPT THE ACCEPTABLE NON-OPERATIVE FINANCIAL INSTRUMENTS THE SELLER’S BANK ISSUES THE PERFORMANCE BOND TO THE BUYER’S BANK TO ACTIVATE THE FINANCIAL INSTRUMENTS.

12.) AT THE BUYER’S OPTION, THE BUYER AND SELLER TOGETHER WILL VISIT THE REFINERY AND/OR THE STORAGE FACILITIES. SHOULD THE BUYER CHOOSE NOT TO CARRY OUT THIS INSPECTION, THE BUYER WILL IMMEDIATELY NOTIFY THE SELLER IN WRITING OF HIS DECISION?

13.) SHIPMENTS WILL COMMENCE WITHIN TWENTY EIGHT TO FORTY FIVE (28 – 45) DAYS OF THE FULFILLMENT OF THE ABOVE PROCEDURES AND CONTINUE AS PER SHIPPING SCHEDULE. BUYER TO SUPPLY SHIPPING SCHEDULE FOR THE FIRST NINETY (90) DAYS SHIPMENTS AT THE SIGNING THE CONTRACT WITH SHIPMENT SCHEDULE TO BE ISSUED FORTY FIVE (45) DAYS AHEAD OF THE ACTUAL SHIPMENT.

PRODUCT DOCUMENTATION:

- SIGNED COMMERCIAL INVOICE
- CLEAN ON BOARD BILL OF LADING
- PACKING LIST
- SGS CERTIFICATE OF WEIGHT GRADE, QUALITY, AND CONDITION
- CERTIFICATE OF ORIGIN,
- PHYTOSANITARY CERTIFICATE
- LOADING / STOWAGE SUPERVISION CERTIFICATE
- CERTIFICATE OF RADIATION
- CROP CERTIFICATE
- SHIPPING COMPANY STATEMENT

ACCEPTANCE:

THIS SOFT OFFER IS OPEN FOR ACCEPTANCE UNTILL THE END OF MAY 2008. AFTER THAT TIME IT WILL BE CONSIDERED NULL AND VOID. YOUR ACCEPTANCE IS BY ISSUANCE OF AN ICPO (IRREVOCABLE CORPORATE PURCHASE ORDER) AND BCL (BANK COMFORT LETTER) AND ITS TIMELY RETURN TO OUR OFFICE BY EMAIL.

ANDREJ LAVRENC, MANAGING DIRECTOR

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Each year a handful of countries compete to be the world’s biggest sugar producer, and in the past few years competition has been getting intense between Brazil and India, as India’s sugar production has grown in leaps and bounds and challenged Brazil’s domination of the world sugar market. Most sugar producing countries are not in a position to do battle with the sugar titans of Brazil and India, but nevertheless seek to increase their sugar production. In most cases, increased sugar production means more profits, but all countries are playing a balancing game between supplying local demand, supplying international demand, and doing both of these things without saturating the market and affecting global sugar prices negatively.

Fortunately for sugar producers, world global sugar consumption is rising steadily, and has been doing so since the mid 90’s. It is now estimated that the average person consumes around 24 kilograms of sugar every year. This growth has been fueled by the increasing prosperity of traditionally poor countries such as India, China, and those in the Middle East. The exception to this rule is Russia, where sugar consumption has been steadily falling due to high import tarrifs and low local production making sugar an expensive commodity.

However in spite of increased consumption, production looks set to exceed demand in 2008 by around 4 million tons, which could push smaller producers and exporters out of the business entirely for this period.

The following are the world’s top sugar producers for the 2008 period. Figures refer to the domestic production of raw sugar.

Brazil is typically the largest producer of sugar, and 2008 is set to be no different, with production forecast at 35 million tonnes. Sugar production is up by around five percent in 2008 due to historical world sugar demand, and the building of ninety new sugar cane mills. Because Brazil is a very low cost and efficient producer or sugar, it is not as affected as some other countries by price dips and fluctuations, maintaining a respectable profit ratio even when prices fall somewhat. Brazilians are also huge sugar consumers, and are well known for purchasing relatively large amounts of sugar regardless of its price point. Brazil has a major sugar cane growing region in the center south, and this region makes up over 60% of its yearly sugar production. With large flat plains and high quality soil, the harvesting and growing of sugar cane is much easier in Brazil than in some other nations. Brazil has also invested significant resources in developing strains of sugar cane with high sucrose content, which further increases the sugar yield at the mill.

India continues to recover strongly from the 2003/2004 dip and is projected to produce at least 26 million tonnes of sugar in 2008. In spite of the fact that India is a less efficient producer of sugar, overall returns on sugar are greater than many other crops. Raw sugar is also very popular amongst the poor not as a sweetener, but as a food source. Because the sugar is consumed raw it contains vitamins and minerals which are not present in refined sugar. As a result of this local demand for sugar, India has many small local sugar production centers, and sugar production overall is quite fragmented throughout the country.

The European Union follows India, with a forecast of around 16.5 million tonnes of sugar. This production is being actively scaled back as production far exceeds the demands of the region. It is feared that excesses of sugar will cause build ups and exports will contravene international agriculture agreements. Over the next few years, production is expected to fall from 16.5 million to 15 million.

China’s production of sugar is set to be up to 12.5 million tons in the year 2008 as part of the push from the Guangxi province which is aiming to produce 7.5 million tons alone by 2010. Sugar is becoming increasingly popular in China as more Western style diets begin to predominate the culinary landscape, and as more and more corn is turned over for ethanol production, making starch based sweeteners harder to come by. For these reasons, sugar prices within China continue to rise, which in turn fuel growth in the sugar production sector.

Thailand is expected to grow over 7 million tons of sugar in 2008. Because local demand is relatively low, almost half of this will be exported on the global market.

Mexico is expected to hit almost 6 million tons of sugar in 2008 due to positive weather conditions and increased mill efficiency. The Mexican sugar industry has been in a process of upheaval and restructuring as labor contracts came under review and reference prices fluctuated. Some mills have yet to be fully compensated for sugar produced in the 2006/2007 period, and this is causing some delays in sugar production.

Australia’s sugar production is forecast up to 5.1 million tons in 2008, as production continues to rise. Most of this sugar will be exported to various countries around the globe, over four fifths of it, in fact. It is estimated that four million tons of sugar will be exported from Australia in the 2007/2008 period.

Pakistan’s sugar production is expected to come in at around 4.35 million tons in 2008. Small amounts of sugar are being exported to Sri Lanka as Pakistan makes efforts to boost both its sugar production and regional exports. The Middle East and Bangladesh are also potential markets for the export of Pakistani sugar.

Russia’s production is still low at 3.5 million tons, but efforts are being made to increase the amount of sugar produced in Russia, and more and more sugar beet is being planted yearly. Russian sugar imports are gradually falling, a sure sign that the push to produce more sugar within the country is paying off. Local growth is being fueled by tarrifs on imported sugar that make it relatively costly, and justify the existence of local sugar production industry.

Cuba’s sugar production is down to around 1.6 million tons, partially due to heavy rains in 2007, and partially due to production equipment issues making the process of producing sugar in Cuba difficult and inefficient.

Sugar Exporter

 Please contact us with your detailed requirements. We will get back to you with availability and sugar price quotation within a few hours.

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The greatest sugar producing nation in the world, Brazil is expected to produce over 32 million tons of sugar in the 2007/2008 period. Sugar production in Brazil has been consistently high for many decades, and has gone from strength to strength. Though production briefly faltered in the early 2000’s, Brazilian sugar production has bounced back, and in the in the 2006/2007 period it easily broke the 30 million ton mark. For a period of time it looked as if India was going to take world leader status in sugar production over Brazil, but due to relatively poor soil quality, relatively poor quality sugar cane, and less efficiency in the sugar production process overall, India has once more fallen behind Brazil.

It is also important to note that in spite of its massive yearly sugar production, Brazil actually allocates quite a large portion, sometimes in excess of fifty percent, of its sugar cane crop for the purpose of ethanol production. It would be quite easy for Brazil to flood the global marketplace with cheap sugar if it so desired, and the evidence of Brazil’s power over global sugar prices was evident as far back as 2002, when increased Brazilian sugar production made global sugar prices plummet to just five cents per pound. The likelihood of the Brazilian government deciding to flood the world market is very low however, especially with the increasing demand for biofuels such as ethanol from sugar cane.

Quite the opposite from the demise of the global sugar market, what Brazil’s large sugar cane crop does mean is that Brazil can very quickly respond to fluctuations in the global sugar market. In years where there are shortfalls, it can supply extra sugar to the market, and in years where the sugar market is saturated it can simply channel more sugar cane into ethanol production.

Regions Of Sugar Production In Brazil

Brazil has two main sugar cane growing and sugar producing regions. The largest of the two is located adjacent to and in the Sao Paulo state region which lies in the center south of Brazil. This fertile and flat region is perfectly suited for growing sugar cane, as there are ample nutrients in the soil to nourish the cane through its growing stages, and when it comes time to harvest the sugar cane, the large flat fields of sugar cane are easily harvested by mechanical means. It is estimated that well over sixty percent of all sugar cane grown in Brazil is grown in the Sao Paulo region.

The second major sugar producing region in Brazil is in the north northeast, and lies across the Pernambuco and Algolas states. The terrain here is much less suited to growing sugar cane, as it is quite hilly, and the soil quality is relatively poor. Harvesting is also much more labor intensive as mechanical harvesters are ineffective, and manual labor is needed to make the most of the sugar cane crop.

The harvesting seasons also differ between the Sao Paulo growing region and the Pernambuco/Algolas region. In the Sao Paulo growing region the harvest runs from May through to and including November. It can sometimes start a few weeks earlier if there are shortfalls in the global market which need to be filled. Sugar is generally plentifully available during this period, but may start to run low from December through to April in the harvesting off season. The Pernambuco/Algolas harvesting season is longer and runs from September through to May, but does little to alleviate global sugar demand, as most of the sugar produced in this region is for domestic use, or has already been traded in advance.

Brazilian Sugar Grades

Although Brazil is the world’s largest sugar producer and exporter, it is not the world’s largest sugar refiner. Most of the sugar exported from Brazil is unrefined centrifugal sugar or raw sugar. There are a few Brazilian refineries who produce a relatively small amount of ICUMSA 100-150, and still less ICUMSA 45. Generally speaking, most sugar purchased from Brazil will be sugar which needs to undergo further refining in order to be suitable for human consumption. If one wishes to obtain highly refined sugar from Brazil, one is advised to order in small quantities, as it may not be able to obtain larger quantities of refined sugar direct from Brazil.

It is often a source of surprise to potential buyers that even if one is seeking to purchase raw sugar from Brazil, one may have trouble sourcing large amounts of any grade of sugar, in spite of the fact that Brazil is the world’s leading sugar producer. This is due to the fact that Brazilian sugar is heavily traded on the futures market, and in many cases sugar is sold long before the cane is even planted. Those new to the market must then content themselves with the surplus amounts of sugar which were not planned for.

If one seeks to purchase large amounts of sugar, one will normally find that the best way to obtain it is to agree to a multi shipment deal, in which the sugar is shipped over a period of months. This is effectively putting in an order on future sugar, and will give one a metaphorical foot in the door to a continuous sugar supply, rather than constantly scraping for the surplus sugar, a process which can be risky if dealing with unscrupulous sellers, and which is most definitely time consuming and potentially disastrous for business concerns which depend on having a consistent supply of sugar.

Brazilian Sugar Exporters

Please contact us with your specific requirements and we will get back to you with available supply and our soft quote.

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Brazil grows so much sugar cane that even the large amounts of sugar it exports around the globe (over 17 million tonnes in 2006) represent only a fraction of its total sugar cane crop. It is estimated that over half the sugar cane grown in Brazil is turned over to ethanol production rather than sugar production.

Both the size of Brazil’s sugar cane crop, and how much of it the Brazilian Government decides will be exported in the form of sugar are significant factors in world sugar trading, so much so that they directly affect the price of sugar on a global scale. Shortfalls send sugar prices skyrocketing, but years in which Brazil has an especially good crop or decides to export more sugar than usual make prices fall dramatically, this was demonstrated in 2002, when Brazil sold so much sugar on the world market that prices were as low as five cents per pound.

Brazilian Sugar Manufacturers

Sugar production is centralized in two main areas in Brazil, the Sao Paulo region is the largest of these areas, and accounts for around 60% of the nation’s sugar cane crop. This region is very fertile and relatively flat, factors which make the sugar cane grow well, and the subsequent harvesting of it relatively easy. The harvest season in the Sao Paulo region runs from May through November, and it is during these times that sugar prices typically dip on the global market, as more sugar becomes available, and the pressure on suppliers is alleviated. From December to April, sugar supplies become tighter and Brazilian sugar may be more difficult than usual to obtain, which is why many sugar buyers secure supplies in advance.

The second sugar producing region of Brazil lies in the states of Alagolas and Pernambuco. The land here is much more hilly, and the soil less fertile than in Sao Paulo Most of the sugar here goes to supply regional demand, and the harvesting season for this region is from September through May.

Brazilian Sugar Exports

The main destination for Brazilian Sugar is the United States of America, which currently purchases around twenty percent of all sugar exported from Brazil. Other major trading partners include Argentina and China, and the remainder of the sugar goes to Japan, Algeria, France, Nigeria, South Korea, and Italy. It is worth noting that Brazilians themselves are very large consumers of sugar, and will buy it regardless of variations in the price. For a long time, Brazil was the only major sugar exporting nation in the world which consumed more sugar domestically than it exported. Now sugar exports have risen so much that even the Brazilian sugar consuming population cannot consume more than is exported, but nevertheless sugar still remains a very popular foodstuff in Brazil.

Grades of Brazilian Sugar

It may surprise you to learn that although Brazil produces huge amounts of sugar every year (over 30 million tonnes), very little of this sugar is sold in the highly refined form of ICUMSA 45 which is often ferociously sought after by sugar buyers. ICUMSA 45 sugar is pure refined sugar with a sparkling white color that is quite familiar to consumers in the West, as it is the sugar that is sold in supermarkets and commonly used in eateries. There are sometimes small amounts of Brazilian ICUMSA 45 available, but the majority of Brazilian sugar exported globally is raw sugar which is then refined in other countries. If one is seeking a lower grade refined sugar, one can generally source Brazilian ICUMSA 150 much more easily that ICUMSA 45, but even ICUSA 150 is still not available in the same volumes as raw sugar. For reasons which will be explained shortly, if one seeks large volumes of Brazilian sugar, one may have to content oneself with purchasing raw sugar.

Brazilian Sugar In Short Supply

It seems strange to learn that even though Brazil is the largest sugar producing nation in the world, it is still sometimes very difficult for new buyers in the sugar market to source Brazilian sugar supplies. There are several reasons for this state of affairs, but the main one is the fact that Brazilian sugar is traded heavily in the futures market, and crops may be purchased as many as two or three years before they are harvested. This means that a newcomer to the market must content himself with the remnants of Brazilian sugar which have either not been secured in futures trading, or which have been grown in excess of the anticipated orders.

Another reason for Brazilian sugar being hard to obtain is the fact that the demand for ethanol, or sugar-ethanol, as it is sometimes called, is growing on a global scale. As a bio-fuel, it is a viable alternative to petroleum products, and when used as an additive in petrol, makes scant and expensive fuel supplies last longer. Population growth, the dwindling of the world’s oil stocks, and uncertainty in the Middle East where much oil production takes place are all factors which are pressing the demand for bio-fuels to new levels. However there is only a finite amount of sugar cane which can be grown in any one year, so the more cane turned over to ethanol production, the less sugar is produced and is available for export.

Prices of Sugar from Brazil 

We supply sugar directly from Brazilian sugar mills. Please contact us through this form below and let us know your specific requiprements. We will get back to you with price quotation within a few hours.

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AMEX – Amex is one of the three largest stock exchanges in the United States. Founded in 1842, it trades mostly mid size and small companies.

ASWP – An acronym which stands for ‘Any Safe World Port’ Generally sugar sellers offer delivery to any safe world port of the buyer’s choice, so this term comes up quite often in sugar trading.

BG – Stands for “Bank Guarantee“, which acts as insurance for the seller on a purchase. When a Bank Guarantee is in place, the bank is legally required to pay the seller in the event of the buyer defaulting on the sale.

BCL – “Bank Comfort Letter” also known as “Bank Capability Letter“. Similarly to the Bank Guarantee, a Bank Comfort Letter is a letter written to the seller from the buyers bank. It states that the buyer has sufficient liquid funds to cover the cost of the sale. A bank comfort letter is not however, an agreement to cover the seller if the buyer defaults on the purchase.

CAD- “Cash Against Documents“. This is a type of selling procedure where title documents are transferred upon receipt of payment.

CIA – “Cash In Advance“. As the name suggests, this is a type of sale where the full amount of the purchase price must be paid upfront.

CIF – A popular term in sugar trading, CIF stands for Cost, Insurance, and Freight. It means that the cost of shipping and insuring the sugar is covered by the seller.

Commodities Exchange – A body or association which sets out rules and guidelines to govern trading in a particular jurisdiction.

Commodity Futures Contract – This is a contract stipulating to an agreement to trade a set amount of sugar (or other commodity) for a certain price on a certain date. These types of contracts are useful for buyers who wish to secure sugar supply into the future but do not wish to risk price fluctuations affecting their bottom line, and sellers who wish to set and maintain a price for their sugar.

CPR – Cédula de Produto Rural, is a Portuguese phrase, which in translation means ‘Agricultural Product Certificate.’ The government of Brazil issues such certificates which offer discounts on large amounts of sugar (and other commodities) into the future. For the buyer, this means securing a government guaranteed sugar source at a low rate for a specified period of time. For the Brazilian Government it is a quick way to raise funds.

CPR – F – These are Agricultural Product Certificates (Cédulas de Produto Rural) which deal in sugar that has yet to be produced.

CPR – X – These are Agricultural Product Certificates (Cédulas de Produto Rural) which deal with sugar that is already in existence.

CWO – “Cash With Order” This term refers to a type of trading arrangement where the buyer makes payment at the time of placing the order, and both parties are then obliged to complete the transaction.

DC – Draft Contract.

FCO – “Full Corporate Offer“. This is a piece of documentation which specifies the nature of the product, and outlines all conditions associated with purchasing said product.

FOB – “Free On Board“. This is a term which declares that the seller must deliver the sugar to the buyer at a location of the buyer’s choosing on board a ship of the buyer’s choosing. In such instances, the seller’s obligations and responsibilities are said to have been fulfilled when the goods pass over the rail of the ship.

ICPO – “Irrevocable Corporate Purchase Order” Used by corporate entities, this document is an order to purchase a certain amount of sugar (or other commodity) of a certain type. This document outlines the terms and conditions which have been agreed upon by the seller and the buyer, and is sent to the seller by the buyer when the buyer wishes to place its order.

ICPO With Banking Coordinates – An ICPO where the buyer also authorizes the seller to do what is called a “soft probe” on the buyer’s accounts which is used to determine that the buyer has sufficient funds to make payment on the sale.

 Soft Probe - is a confirmation method used by banks to verify funding for a seller from a buyer, conducted by the seller’s bank to the buyer’s. The Sellers Bank asks the Buyers Bank if the Buyer has enough funds to pay for the purchase.

ICUMSA – “International Commission for Uniform Methods of Sugar Analysis”. This is the international organization which standardizes testing of sugar across the globe.

ILOC – “Irrevocable Letter Of Credit” This is a letter provided from the buyer’s bank to the seller which guarantees that payment for goods will be made on time and in full. This letter cannot be canceled, and upon shipping of the goods, the seller with be paid.

LC / LOC – “Letter of Credit” A very popular device for guaranteeing payment to sellers, a letter of credit is issued by the buyer’s bank and provided to the seller. It guarantees payment to the seller when the seller’s obligations are met according to the terms of trade. Because sugar trading is done on a global scale and parties are not always able to reliably verify the reputation and trustworthiness of their potential trading partners, letters of credit are often requested by sellers.

LOI “Letter of Intent” – A preliminary document sent from the buyer to the seller indicating that the buyer would seriously like to enter into negotiations with the seller. This is not a legally binding contract, but it is often the first step in opening negotiations between a buyer and a seller.

MFPA – “Master Fee Protection Agreement“. This is a document outlining the terms for payment of third party brokers. In many cases sugar is not traded directly from the seller to the buyer, but through middle men who receive a cut of the proceeds from the sale as a commission. The master fee protection agreement protects these agents and ensures that they are paid.

MOG – “Minimum Order Quantity” Fairly self explanatory, the minimum order quantity is simply the smallest amount that a buyer can purchase from a seller.

PB “Performance Bond“ – This is a bond which guarantees the buyer that the seller will meet its obligations and supply the agreed commodities in accordance with the terms and conditions agreed upon. Issued by an insurance company, it acts as protection for the buyer.

POF – “Proof of Funds“. There are many ways in which a buyer can prove that it has the funds to cover the transaction, the most common of these being soft probes and bank comfort letters.

POP - “Proof of Product” means different things to different people. Basically it is some kind of proof that the seller really is in possession of the goods which are being sold. An example of POP can be an allocation letter, ownership certificate, SGS report of the stock, past Bill of Landing. You have to specify which is needed by the buyer and which could be provided by the seller.

SBLC – “Stand By Letter of Credit” This is a document which is issued from one bank to another bank and which confirms that the company has sufficient collateral to cover potential fiscal responsibilities incurred in a sale.

LC at Sight – A letter of credit that is payable once it and certain documents are sighted.

Soft Commodities – This term generally refers to commodities which are grown. Sugar is therefore considered a soft commodity.

SWIFT – “Society for Worldwide Interbank Financial Telecommunication” A global service which facilitates inter bank communication and transactions all over the world.

RWA – “Ready Willing Ability“. Means Ready to sign Willing to pay and your bank confirms that you are Able to meet the payment conditions. The RWA is ssued by the buyer’s bank.

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Based on a colormetric assessment, ICUMSA Ratings essentially reflect how white a sugar is, and therefore how refined and high quality it is. The sugar refining process that removes both impurities and the brown color from sugar results, in optimal conditions, in producing top quality sparkling white sugar known as ICUMSA 45. ICUMSA ratings can also be used to rate raw sugars, with ICUMSA ratings sometimes heading to ICUMSA 4000 and beyond.

The ICUMSA test is generally carried out with a tristimulus colorimeter that takes readings of how much light is absorbed by the sugar. Raw sugar absorbs a great deal of light, whereas refined sugar absorbs very little. The colorimeter is capable of quantifying exactly how much light is absorbed and generating a replicable reading based on this data.

Whilst the ICUMSA ratings system is a global standard, there are some jurisdictions, Europe in particular where the system has been reversed, and ICUMSA 42 refers to raw sugars. The more often used system, where ICUMSA 45 refers to highly refined white sugar is referred to as the Brazilian SGS system. Most purveyors of sugar will note whether they are using the Brazilian SGS system, but if you are in any doubt, inquire as to the ratings system being used.

Here is a break down of some of the most common types of ICUMSA rated sugars commonly sold. Please note that these are by no means hard and fast grades, and that you may encounter sugars which fit between these grades, or have requirements for sugars falling outside them yourself.

Refined Granulated Sugar

ICUMSA 45

This is the standard for commercial sugar sold to consumers in most western nations. This sugar has undergone rigorous refining and is the most safe sugar for human consumption. In some cases, it may have brown color added to it to create safe “brown” sugar. One can find ICUMSA 45 in supermarkets, eateries, and in the homes of millions of people worldwide.

Extra Special Crystal Sugar

ICUMSA 100 – 150

This sugar does not quite have the sparkling color of ICUMSA 45, nor the quality, but is still a food grade sugar and is quite often used in the manufacturing of drinks and foodstuffs.

Special Crystal Sugar

ICUMSA 200

Also food grade sugar, once again, less refined than the previously listed ICUMSA grades, but is used in food applications where a lower grade of sugar is acceptable.

Consumable Raw Sugar (Brown Sugar)

ICUMSA 600-800

This is the absolute limit when it comes to consumable sugars. Though this sugar is a brown color, it is generally not the same brown sugar sold in many places in Western Countries. Brown sugar is, in those cases, typically ICUMSA 45 sugar with colorant added. Some prefer to consume raw sugar however, and in those cases sugars in the ICUMSA 600 to 800 range are often used. Any sugar with a rating higher than ICUMSA 800 according to the Brazilian SGS system should not be consumed by humans as it contains a great deal of bacteria and contaminants that can lead to illness.

Raw Sugar

ICUMSA 1600 – 2000

This sugar is suitable for refining, but should not be consumed by humans.

Very Raw Sugar

ICUMSA 4600 MAX

The rawest form of sugar. Likely to contain high levels of contamination, must be refined to be of any use in most applications.

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