top of page
Logo T&T Transparente V2.0.png

When Sweet Turns Sour: The Hidden Risks of Buying ICUMSA 45 Sugar in Brazil

  • Writer: Dinko Tudor
    Dinko Tudor
  • 6 days ago
  • 2 min read
paper boat made from a dollar bill slowly sink into the ocean

Ever seen a paper boat made from a dollar bill slowly sink into the ocean? It’s more than a poetic image it perfectly captures what happens when well-meaning buyers fall for deals in the lucrative, yet risky, Brazilian ICUMSA 45 sugar market.


Brazil is a top global exporter, but behind the attractive prices and glossy documents hides a maze of ghost companies, fake intermediaries, and scams that can leave your investment at the bottom of the sea.


What’s on the Line?


Many importers from Dubai to Europe and Asia have been lured by offers at US $220/MT, only to realize:


  • Documents roam free: SGS certificates, BLs, contracts often stolen or fabricated.

  • After an advance payment? The ship never sails, and phone numbers vanish.


This is not rare it’s a continuous pattern in the market.


Most Common Traps


  1. Ghost companies

    Domains look real: copersucartrading.com vs. the authentic copersucar.com.br.

  2. Fake yet believable docs

    SGS reports, B/Ls even facility photos can be duplicated from real exporters.

  3. Phantom intermediaries

    Brokers might resell your company’s LOI or impersonate you elsewhere.

  4. Too-good-to-be-true prices

    Offers under US $400/MT FOB are almost always scams.


Understood the Market?


Before entering deals, ensure you:


  • Understand what sugar type your market needs.

  • Define whether you’re operating in physical trade or futures.

  • Know total import costs at your destination port.

  • Track REAL pricing via ICE London, NYCE, Sugaronline, and ISO avoid Alibaba-based benchmarks.


Market Pricing Snapshot


  • Brazil’s average FOB price in June 2025 at around US $488/ton.

  • The ISO (International Sugar Organization) daily price is roughly US $472–486/ton over early July (2025).

  • Fugo Materials shows CIF prices at US $460/ton for 12,500 MT long-term contracts  .


Offers below US $450‑$480/MT CIF or US $400/MT FOB are immediate red flags.


How to Stay Afloat


  • Verify counterparty independently: Use official databases, call the mills directly not the contacts they provide.

  • Use proper trade finance: Secure Letters of Credit, SBLC; avoid advance transfers.

  • Validate all documents: Confirm with issuing bodies e.g., SGS portal, mill quality team.

  • Insist on mandates: Brokers should have valid broker mandates from sellers/buyers.

  • Connect human-to-human: Video calls or mill visits can unmask ghost operators.


Final Thoughts


That sinking dollar-boat isn’t just art it’s a warning. Brazilian ICUMSA 45 sugar trades carry promise but without solid due diligence, you could end up in deep water.


Trade smart. Price correctly. Verify every step.

Only then can you turn a risky venture into a truly sweet success.



 
 
 

Comments

bottom of page