Beware, it’s in the detail.

The internet has made it easy for legitimate companies to buy and sell petroleum. The problem is that it has also made it easy for illegitimate companies to operate. It has gotten to the point where buyers and sellers are wary of anyone who deals in petroleum products.

However it is possible to find real sellers, if one is prepared to look. But, as the heading warns, the traps are in the detail. Always be on the guard because the illegitimate buyers and sellers out there have more tricks up their sleeve than a circus magician. Here are some tips to stay ahead of them.

1.      When you get the SCO check the procedures. Be on the lookout for requests for fees/charges in addition to the actual cost of the product. Commonly this will be fees for contract registration or transfer of title. These should be included in the cost of the product already and is a good sign that this deal is one to be avoided.

2.      When you receive the FCO check the wording against the SCO. Many buyers will assume the wording to be the same. Often this has been changed in small but important way and they will also set a tight turnaround time for a buyer to return the FCO, giving a buyer less time to check.

3.      When you get the Draft Contract again check the wording, and not just the main parts. These documents are often 10-12 pages long and it isn’t hard to slip something in hoping that the buyer will not check every page. Of course you have to sign every page so if you don’t check you have no-one to blame but yourself.

4.      Finally check the Final Contract before you sign it. Until you have established a relationship with the seller, including the completion of a successful transaction, be alert.  

Written by Haydn Leseberg, Trade Manager, Sutlet Group.

Sutlet Group provides professional trading services via our contacts of buyers and sellers all over the world.

Contact us for pricing on coal, petroleum, rice, urea, chemicals, iron ore and sugar.

Wheat – the grain drain

In 2009-2010 the harvest in Russia was so short of expectations that the government banned exports to protect the internal market. This lead to shortages in the market, high prices and a move to other grains like rice. This, in turn, lead to higher prices for rice too.

Figures that are available for 2010-2011 show continued shortfall in the current harvest which means a continuation of lower output in both Russia and the Ukraine. This has been caused, for the most part, by an unusually hot summer and a continuation of the drought. It is rather ironic that Pakistan will also have shortages, but that their shortages are caused by floods.

Additionally, while the wheat harvest yield is below expectation there is also real pressure on rice. Most of the north and north-east of Thailand is underwater and the floods in Pakistan put its own rice production in danger. 

Written by Haydn Leseberg, Trade Manager, Sutlet Group

Thai govt agrees to export 50,000 tons of rice to Indonesia

The Commerce Ministry has agreed to sell 50,000 tons of rice at low price to Indonesia, which has been facing both the volcanic and tsunami disasters.

The rice will be sold at a very low price through a Government-to-Government (G2G) agreement. The Thai Commerce Ministry has not selected a private company to handle the task so far, as the agreement has yet to be signed.

Meanwhile, the Fiscal Policy Office Director Naris Chaiyasut said the Office had been assigned to thoroughly study the agricultural insurance program, which was scheduled to be implemented next year to insure losses against drought.

From http://www.siamdailynews.com

The rice market

At the moment the supply of rice is a problem. But just how much is caused by poor crops and how much is caused by government interference with the supply?

We know that the latest harvest in Pakistan was 40% down on previous harvests. This caused a real problem as Pakistan not only consumes rice domestically but earns valuable export dollars. Add to this the poor wheat harvest and a sugar shortage and that weighs heavily on their GDP as well.

The wheat harvest was so bad in Russia that they stopped exporting. This had the effect of causing shortages in importing countries and they then turned to rice as a substitute. This also effected rice stocks. But a check of stocks in the local market here in Thailand show that stocks are plentiful even as the price climbs,

But we shouldn’t get too excited because right now huge areas of land used primarily for rice growing are currently underwater from unprecedented floods in the north and north-east of Thailand. It may well be that those reserves, which were seen as a government manipulation of the market, will come in handy when domestic production falls. In a country where rice is a staple any shortage of rice would be a total disaster.

Written by Haydn Leseberg, Trade Manager, Sutlet Group

Siam Trading Guide to Urea: Part 4

The conclusion to the analysis of Urea has come to a close with how to store it, the release of urea, and most importantly, “Urea Do's and Don'ts”

Do you need to acquire large quantities of Urea? Siam Trading, can arrange this with our partners, the Sutlet Group.

Urea Storage

Urea is neither combustible nor explosive. It can be stored safely with no loss of quality under normal circumstances. Small or fast-moving augers should not be used to move granular urea. Urea particles are generally soft and abrasion can break the granules. Belt conveyers should be used whenever possible. Urea should not be stored with ammonium nitrate. These materials, when in contact, rapidly absorb water when the relative humidity is above 18%.

Slow Release Of Urea

Urea fertilizer can be coated with certain materials, such as sulfur, to reduce the rate at which the nitrogen becomes available to plants. Under certain conditions these slow-release materials result in more efficient use by growing plants. Urea in a slow-release form is popular for use on golf courses, parks, and other special lawn situations.

Urea Do's and Don'ts

• Store separately from ammonium nitrate.
• Do not use small, fast-moving augers to move the urea.
• Do not exceed a spreading width of 50 feet when urea is applied.
• Do not place in direct contact with corn seed.
• Keep rates of nitrogen applied together with small grain in drill to 10 1b. on dry soils, 20 lb. when soil is moist.
• Apply urea on sod crops when atmospheric temperature is below 60 degrees F (15.5°C).
• When urea is broadcast on soils of high pH (above 7.5), the material should be incorporated into the soil as soon as possible.

Prilled

Nitrogen - 46% minimum

Moisture - 0.3% max.

Free Ammonia -  160 PXT PPM maximum1

Biuret - 1.0% maximum

Harmful Substances - 100% free

Melting Point - 132 degrees Celsius

Granulation - 1-4 mm 90% minimum 

Colour White -  Standard White or Pure

Odour - Odourless

Boiling  - Decomposes before boiling

Radiation - Non radioactive

Physical State -  Solid @ 20°C, 101 KPA

Specific Gravity -  Solid @ 20°C, - 1.335 t/m³

Floatability - Sinks and Mixes

Molecular Weight - 60.065

Free flowing - Treated against caking.

Granular

Nitrogen - 46% minimum

Moisture - 0.5% max.

Free Ammonia -  160 PXT PPM maximum1

Biuret - 1.4% maximum

Harmful Substances - 100% free

Melting Point - 132 degrees Celsius

Granulation - 2-4 mm 90% minimum 

Colour White -  Standard White or Pure

Odour - Odourless

Boiling  - Decomposes before boiling

Radiation - Non radioactive

Physical State -  Solid @ 20°C, 101 KPA

Specific Gravity -  Solid @ 20°C, - 1.335 t/m³

Floatability - Sinks and Mixes

Molecular Weight - 60.065

Free flowing - Treated against caking.

 

In conclusion as seen by the numerous blog posts about Urea, the agricultural fertilizer, it can be seen that it both has its advantages and disadvantages. Nevertheless, what should be noted is its important on the world stage as an ever growing global agriculture industry which is swaying ever closer towards the use of chemical fertilizers. It can be seen that there is a natural alternative that will hopefully be capitalized on in the near future.

For more information, contact Siam Trading, via the Sutlet Group.