🕵️♂️ Speculators in the Sugar Export Market: How to Avoid Wasting Time 🕒🍬
- joao
- 24 de mar.
- 2 min de leitura
In the sugar export market, especially with commodities like ICUMSA 45, it's common to encounter speculators who may create false expectations or even jeopardize the credibility of negotiations. Knowing how to identify and avoid these intermediaries is essential for ensuring an efficient and reliable operation.
🔍 Who Are the Speculators?
Speculators are often intermediaries who lack the capacity or real intention to close a deal. They insert themselves into transactions looking for a quick gain, usually without any control or commitment to the product. The result? Serious companies end up wasting time on empty promises and complications that delay the export process.
🚩 How to Identify Them?
Here are some red flags:
Lack of Clear Documentation: Speculators often can't provide a documented ICPO (International Corporate Purchase Order) with detailed information on quantity, target price, Incoterms, and payment terms.
Requests for Generic Information: If a potential buyer or intermediary asks many superficial and generic questions without advancing to technical or commercial details, this could be a sign of speculation.
Excessive Urgency: Speculators often act with exaggerated urgency, without justifying why the deal needs to be closed quickly.
Multiple Intermediaries: When too many parties are involved in the negotiation, it’s likely that some are speculators merely "passing along" the opportunity without adding real value.
💡 How to Avoid Them?
- Early Verification: Before moving forward with a deal, make sure the potential buyer is legitimate. Request formal documents and verify their trading history.
- Demand Transparency: Always require a detailed and complete ICPO, which helps ensure that the buyer is truly committed to the deal.
- Limit the Number of Intermediaries: Prioritize direct negotiations with buyers or a small number of trusted intermediaries.
- Use Rigorous Contracts: Employ detailed contracts that clearly outline responsibilities and conditions, preventing future complications with speculators.
📈 Benefits of Avoiding Speculators
By focusing on serious and legitimate partners, you save time, avoid frustration, and improve your reputation in the international market. Furthermore, quicker and more secure transactions result in a more efficient and profitable export operation.
Avoiding speculators in the sugar export market is crucial to maintaining the efficiency and success of your operations. Always prioritize trustworthy partners and well-structured negotiations.
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📧 Email to João: joao@husglobal.com.br
✅ Quotation procedures: Based on Incoterms ICC500 / 2022
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