Sugar is one of the most traded and most imitated commodities. This page sets out the grades, the documents, how established sellers actually contract, and the broker-market procedure you will receive in most offers, with what to check at each step.
Grades
| Grade | What it is | Price reference |
|---|---|---|
| ICUMSA 45 | Refined white sugar, colour max 45 ICUMSA units, for direct consumption and food industry | ICE London No. 5 white sugar, plus premiums by origin and destination |
| ICUMSA 100–150 | Plantation or mill white, slightly coloured | Discount to refined white |
| ICUMSA 600–1200 (VHP) | Very high polarization raw sugar, mainly from Brazil, shipped in bulk for refining | ICE US No. 11 raw sugar |
| Beet sugar | White sugar from sugar beet (EU, Black Sea, Türkiye) | Regional; close to white sugar levels |
ICUMSA 45 specification commonly quoted
| Parameter | Typical limit |
|---|---|
| Polarization | min 99.80°Z |
| Colour | max 45 ICUMSA units |
| Moisture | max 0.04–0.06% |
| Ash content | max 0.04% |
| Solubility | 100%, dry and free flowing |
| SO2 | max 20 mg/kg |
| Packing | 50 kg polypropylene bags with inner liner, or 1 MT big bags; bulk for raw sugar |
Specifications must be in the contract and checked by an independent inspector at loading.
How established sellers contract
- EnquiryBuyerGrade, quantity, packing, destination port, delivery period, Incoterm, payment method.
- KYC both waysBuyerSellerCompany documents, ownership, bank details, references. See Documents Checklist.
- Offer and negotiationSellerPrice usually quoted as a premium over ICE No. 5 or No. 11, or as a flat price with short validity.
- ContractBuyerSellerSPA, often referencing Refined Sugar Association or Sugar Association of London rules and arbitration.
- Payment securityBanksDocumentary LC at sight, confirmed where needed; or SBLC supporting payment by transfer for a programme.
- Trial shipmentOften 12,500–25,000 MT, or containers for smaller buyers.
- Loading and inspectionSGS or another agreed inspector at loading port: quality, weight, packing.
- Documents and paymentBanksInvoice, B/L, certificate of origin, SGS quality and weight, phytosanitary and health certificates, insurance (CIF), fumigation where required.
The broker-market procedure
Most sugar offers that reach intermediaries use a version of the procedure below. It is presented here so that buyers and brokers recognise each step and know what to verify.
| Step | What is asked | What to check |
|---|---|---|
| 1 | Buyer issues LOI and CIS | Only after you have checked the seller's company and its link to a producer |
| 2 | Seller issues SCO | Named producer or mill; price versus the market for the same Incoterm |
| 3 | Buyer issues ICPO with KYC | Send KYC only to a verified company on its own domain |
| 4 | Seller issues FCO; buyer signs | Validity, quantity tolerance, inspection, law and arbitration |
| 5 | Draft SPA, call, signature | The SPA must name the seller who will appear on the B/L and invoice |
| 6 | Buyer's bank sends MT760 (SBLC) or MT700 (LC), often within 7 banking days | An instrument before any proof of product shifts all risk to the buyer |
| 7 | Seller issues a 2% performance bond | Ask for the PB from the seller's bank at the same time as your instrument, not after |
| 8 | Shipment within 20–25 days; SGS at loading; payment by transfer against documents | Verify SGS reports directly with SGS; pay only against original documents through banks |
Payment guarantee options in sugar offers
| Payment at port of loading (POL) | Payment at port of destination (POD) | |
|---|---|---|
| Transferable instrument | Usually the lowest price: the seller is paid at loading and can transfer the instrument to its supplier | Higher price: the seller waits for arrival |
| Non-transferable instrument | Middle price | Highest price; offers often require a top-25 international bank |
Check before you tradeAs of our 14 August 2026 monitor, ICUMSA 45 Brazil FOB screened at about USD 450–520 per MT and raw sugar at 16.82 US cents per lb (about USD 371 per MT). Offers for ICUMSA 45 at CIF prices below the FOB range, in volumes of hundreds of thousands of tonnes a month, describe a market that does not exist. Online sugar fraud of this kind has been reported by P&I clubs for over two decades.
TradeScout24 Trade Desk · Sources: broker procedures and price sheets reviewed by TradeScout24 (April–June 2026); TradeScout24 Weekly Market Monitor, 14 Aug 2026; ICE contract specifications · General information, not an offer · Last reviewed 25 Oct 2026