10 Lessons from a Commodity Broker

These people are experts in the field. Learn all from them!

Being a commodity broker is not an easy feat. After learning everything to ace the Series 3 test, you need to consider actual work responsibilities and other things that will come with practice. The lack of information often generates problematics and mistakes in the long term. People that are new in the business make errors that could be prevented with a little heads up from expert traders. For that reason, we spoke with commodity brokers and compiled 10 must-know lessons that can help you reach your goals!

Write it all down: you need to make sure to have all information on paper. While standing up to verbal agreements is a sign of maturity and chivalry, not all people are willing to honor them. So make sure to write it all down and get signatures on paper before delving into any financial activity.

Do triple checks: there has to be a verification process for every activity. You must learn that you need to double, and even triple check. This will ensure that you have all that you need for the process to work correctly.

Learn basics in other languages: greetings in other languages are ice-breakers. They demonstrate your potential customers that you are making an extra effort to understand them. You break the ice and show that you are really invested in your clients by just doing this simple thing.

Be friendly: if you put distance between yourself and your clients, you lose an opportunity to create a stronger business relationship. Being professional and friendly with your customers and partners ensures more future agreements.

Get certified by legal entities: if you want to work legally in the commodity market, you need to get certified by several legal authorities. Earning your legal right to work by approving the Series 3 test is just the first part. Chambers of commerce, legal inspectors and the like offer courses that you can complete to have certifications to work more profoundly in the field.

Wake up early: even though this might seem like a general notion, waking up early gives you a good head start in the business. Market prices, information that can affect your whole day and transactions usually are published first thing in the morning.

Do investigative work: when you investigate, there’s little that can surprise you. It’s fundamental that you are well informed when you work with commodities. Also, being inventive saves you a lot of trouble.

Pick one area: working in several areas at the time might seem beneficial for you, but if you do it the wrong way, there’s a good chance of messing something up. Select one area and know all you can about it. Sure, you can branch out. But specializing in one will give you a business advantage.

Make a visual calendar: having personal calendars makes work easier. Create visual charts to indicate delivery times and who’s in charge of what. It helps you tackle down responsibilities and tasks and to keep track of other activities.

Learn the how-to of product sourcing: acquiring the products is harder than selling them. Learning how to do product sourcing is fundamental for your success. Picking the best providers is an art, and it will ensure a productive selling opportunity.

Bonus tip:

Do follow-ups: these are fundamental for the productivity of your business. If you don’t do them, there’s a good chance you are missing a business opportunity somewhere, as well as lacking information on the satisfaction levels and potential recommendations from your clients.

Want to know other tips from a company with trajectory and history in the commodity market? Check out the social media profiles of Coagro Corp! They are not only professionals in oil, green coffee, sugar, milk and selected grains trade but also experts in advising you when it comes to trading. Contact them now!

They know the do's and don'ts of the trading business. Hear them out!

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Product Inspection: Why is it Important

Knowing the products you buy or sell is fundamental.

There's one thing consumers don’t often consider when they are using the products they buy: how these products obtain their level of quality. While this might seem like a strange question, have you ever questioned yourself on how a product reaches your hands in a particular state? What makes it buy-worthy? Companies not only manufacture them but ensure the materials, the manufacturing processes and the final product that leaves their premises are up to the quality standards they set. To do so, they implement product inspections to guarantee whatever they put on the market it’s fit for their customers.

Every product in an industry must be checked before, during and after the manufacturing process. This is called product inspection, and it’s done in a variety of ways. It depends mostly on the nature of the product, the manufacturing, and the final result. The inspection values will also vary, and be directly related to what the person in charge of the business requires to investigate. For some companies, is about texture, while for some it’s about color. As you can see, these inspections depend mostly on nature of the process and are personalized to each manufacturing company demands.

Why is product inspection important?

Now, to the big question: why is it important? Maybe for you, it’s not such a big deal, but for companies, ensuring their product quality is a crucial matter. It’s the difference between a successful business association and a commercial failure. Lacking proper inspection can also generate machinery problems, product damage and overall losses for the company. But there are several more reasons why product inspection is fundamental for a venture.

Here's a handy list of reasons why it’s fundamental to do product inspection:

• It ensures correct delivery of the raw material.
• It does a follow up to the established provider information.
• It allows verifying products quality.
• It ensures standard presentation and characteristics throughout production.
• It prevents manufacturing problems and mistakes in the long run.
• It prevents issues on production lines due to defective materials.
• Product inspection adds value to those businesses that implement it. It goes beyond the quality of the product, as it’s a way to ensure the efficient and ameliorating their manufacturing processes.

Can you name another reason why product inspection is fundamental? Make sure to share it with us in the comments! Remember that Coagro Corps ensures that their products are properly inspected before and after shipping, ensuring quality raw materials for their customers. There is a reason why they have been leaders in the commodity field for over 20 years! Know more about what they have to offer, checking their social media profiles.

Preparing the products for their inspection is a fundamental process for your company.

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Frequently Asked Questions in the Trading Business

Things you must consider in the trading business.

Like any other work field, the trading business has its own language: terms that only apply to this area or that are inherently connected to the business context. For many, these are the key to understand how these particular commercial activities work. But when you are starting in this field, knowing what these terms mean is fundamental to have success in the business. There are also questions that come to mind with them, and for those, we have some answers. In this article, you’ll explore the frequently asked questions in trading business accompanied by specialists of Coagro Corp.

What are commodities?

Commodities are nothing but the raw products for manufacturing companies. These are limited to products of natural origin, such as vegetables. Living stocks don't classify as a commodity, but their derived products, such as milk or meat, do.

Who can participate in commodities?

To work with commodities, you need to be either a provider, a buyer or an intermediary. The first two are the main participants, while intermediary can be a commodity trader, a transporting company, legal aid or the like. Anyone who wants to participate in commodities as commercial activity has to fall into these categories and have the permissions necessary to do so.

Can I be a commodity trader?

If you are looking into commodities as a work option, you need to get qualified to do so. The Series 3 test is an international certification fundamental to do this job. Then, you need to decide if you are going to work inside this field as a freelance entity or with a company. The latter is the best option if you are a rookie.

What’s the limit of commodity functionality?

Product's offer and demand limit commodities. The trading services work directly with the providers to ensure availability, and then they ensure a commercial benefit for all parties involved with potential buyers. All these operations are limited by the characteristics of the market, prices, estimates, and qualities of the product (if it is perishable or not).

Are commodity prices country-specific?

It depends on the product. Most countries seek to participate in international trade agreements that guarantee a free market. This allows products to regulate themselves with offer and demand balance. However, countries that produce unique products, such as Colombian coffee, have price leverage in this market and can delimit the range of price of the product, if they desire to do so.

How do commodity prices vary?

Prices on raw materials are self-regulated by the market. But these regulations can occur from one day to another, depending on market independent variables. These can be the weather, natural disasters or crop diseases that damage the production of a product, for example. These will generate a low offer, raising the prices for the product available due to the demand.

What’s commodity index?

These numbers indicate the value of a particular commodity within the commercial field. The prices in this index are limited by variables that can or cannot be country or regional specific and tend to be updated with regular frequency.

Is investing in commodities risky?

Every commercial activity involves a risk. Commodities are self-regulated and can change from one day to another. It’s not risk-free, but if you work with professionals, there’s a lower chance of losing money.

What’s future exchange?

These are contracts set between legal parties, without direct representation. These documents are limited to an agreement to trade certain products within a specific timeframe. They don’t involve the product as a physical entity. It's a legal binding future ownership and availability of a said product.

What’s stock exchange?

A stock exchange is an exchange where products held by the producer or temporary owner are sold to another party. It's a simple exchange of money and product in a basic commercial transaction, but can also be done by a trader inside an industry or company (an associate, for example) that sells the stock to a third party. A stock exchange is basically trading with elements that are available at the moment, with an intent on immediate commercialization.

Do you have any other questions regarding commodities and trading? You can leave them in the comments on our social media profiles! That way, you’ll have the expert team of Coagro Corp answering them for you. With over 20 years of experience in the trading field, they are you a to-go option if you want to know more about this market!

These are doubts that many want to answer.

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7 Reasons to Change from one Trading Company to another

Several signs will indicate it's time to change to a new trading company.

Commodity markets are constantly changing. No area sits still, without experimenting a surge or fall, within a month’s period. Contracts are reworked, conditions transform, requirements change, and all of these modifications affect your work. There’s an interesting thing about it: professionals within commodity companies know how to work efficiently in this ever changing environment. That's why providers hire them to work along with them, yet sometimes, this service-customer alliance is not beneficial for both parties.

What happens when the work is not entirely what you expected? The way in which this company faces the changes within the market can make you wonder if you hired the right one. Or maybe there’s something else you want to work on, and the company doesn’t allow you to change your contract. There are countless reasons why it might be time to consider changing to a different company. But to know if this is what you must do, you need to explore all the reasons, pros and cons thoroughly. Today, we bring you a list of 7 reasons to change from one trading to company to another.

Lack of communication

Commodities are services where people look for alternatives that make them feel secure and listened to. Some companies fail at (or avoid) communicating with their clients. That lack of information might cause problems in the long run, and when money and products are involved, information is power. When you can't communicate with your commodity company, it might be time to search for someone new.

Disagreement on the terms

Sometimes, we go into a business agreement without really knowing what we’re getting into or how it will develop in the long term. The small letters in contracts might cause disagreements in the long run. Maybe a better business opportunity arises, but your commodity company doesn’t agree or doesn’t want to take it. You need to consider changing when the terms aren’t beneficial for you and the company isn't willing to renegotiate them.

Neglected operations

Companies that work with a lot of customers could neglect little details. While this might not seem like a big problem, it can cause real issues in the long run. Some business operations require special attention and close supervision. Some commodity companies lack that attention to detail, and those neglected processes might cost you money. Perhaps, that's another sign it's time to change to another company.

Need for better business opportunities

There are countless opportunities for commercial growth. When these arise, you need to think them through very seriously, since these are often once-in-a-lifetime chances of increasing our commercial profit. If your commodity company doesn't face the challenge, maybe it’s time to change. A great commodity company will allow you to expand your business opportunities, and if this doesn't happen, then it’s not working for you.

Promises shortfall

Many companies promise a lot of things to get a contract. A good one will make sure to follow and accomplish them. A bad one? Well, they will simply ignore the majority of those promises, or avoid them altogether. This failure on the promises and agreements they made is highly damaging for your business operations and can cause you losses in the long run. Consult promises or future agreements that were agreed in the past, and if you don’t get a satisfying answer, then look for a new company.

Personal disagreements

These often lead to another kind of problems. Personal disagreements can sour your professional relationships. Maybe you are an early riser with a good follow-through politics when it comes to commercial operations or a person that needs to be informed of every decision. Companies should adjust to their customers. When that doesn’t happen, personal disagreements arise. If you don’t feel satisfied with your service, then it's time to walk away from that commercial agreement.

Professional validation

This might now seem all that important, but you need to have in mind that professional validation is fundamental for a good commercial relationship. When the company you hire doesn’t work professionally or comprehend your expertise on a field, then the association can turn sour. You need to have professional validation of their knowledge, and be sure that they are indeed qualified to do their part. If that doesn't happen, then it's time to work with someone else.

Are you able to relate to one or two of these items right now? Then, maybe, it’s time to switch up and find a company that is the perfect fit for you. Coagro Corp goal it to build professional relationships with every customer, considering all their concerns to establish a productive relationship with them. Check how they guarantee communication, professionalism, commercial success and much more for all parts involved. With over 20 years of experience in commodities, it’s no wonder they know how to accomplish their customer's expectations. Check their social media profiles and website to find out more!

Focus on what the future might bring. Will this company support your future needs?

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5 Traits of a Successful Commodity Trader

Certain personal characteristics can be polished to achieve better results.

In the business of trading, some characteristics make the difference and determine the success of a professional in this field.They might seem obvious to you, but they are certainly distinctive to those who work in the trade world. These subtle differences are the ones that separate amateurs from veterans and struggling commodity traders from successful ones. If you are thinking of finding your way in this world or hiring someone in it, then it might be time for you to use this knowledge to make informed choices. If you want to know, you are in the right place!

Disciplined: commodities are a business that requires the sharp focus of someone disciplined. Sometimes, a commodity trader has to wake up early in the day to speak with a customer that lives in a different time zone. Another day he will have to converse all day with a supplier to clarify a particularly important operation. You can't work without discipline in this field!

Organized: having all perfectly organized is fundamental for commodity traders. Most of them work with more than just one client at a time, so keeping things neat and divided ensures that no misplaced paper affects their customers. This also applies to commercial operations, since they must be done with a method that ensures efficiency and leaves nothing up to luck.

Communicative: a great commodity trader will tell you everything you need to know. They are great at communicating with their customers, and their utmost priority is to make sure the information they provide is accurate and timely. This means that your commodity trader will ensure that you’re not blindsided by the lack of information during a commercial deal.

Straightforward: successful commodity traders are not cowed down by anything. They are competitive and tenacious when they want something. This makes them especially active and prone to turn to the direction of the best deal for their clients. They are engaged with the benefit of their customers, so they create the best opportunities for them.

Investigative: in the commodity trade world, information is power. If you work in this business, you need to be attentive to detail, and to focus on making the most out of every single opportunity. Any bit of information can make a difference, and you need to polish your detective skills to achieve the desired results.  

Of course, other skills and personality traits also make successful commodity trader.  Among those is the experience time working with professionals on the field. That’s who Coagro Corp is! They work only professionals that have all the traits of successful and proactive commodity trader, to provide the best attention to their customers. Want to import goods or to acquire raw products? Coagro Corp does it for you and gives you consulting opportunities to work in the amazing world of commodities!

These traits differentiate an ordinary commodity trader from a successful one!

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Business Alliances: Setting the Association Rules

When you work ahead of time and create association formatives and rules, the partnership is much more productive.

Business alliances are part of what makes a company work. These are often the pillars of a successful business strategy and function as methods for companies to create a stable path to increase their commercial opportunities. These can be among members of the commercial activity or can be third parties that will benefit with what you provide or vice versa. Regardless of this, the reality is that behind almost any choice you make, purchase-wise, there’s a business association.

However, to create an efficient system, companies need to consider something really important: the rules. These norms work as guidelines for all the parties involved, indicating their responsibilities and duties within the association. Association rules also work as protection, as they are the base from which any of the parts can claim unfulfillment of the agreement, and take legal action. As you can see, they work both in the positive and negative aspects of any legal transaction among several businesses. But how are these norms set?

The association rules are set out looking for several things: business stability, problem-solving possibilities, reach more audience and increase profit margin. This means that every single one of the rules needs to be focused on these. But to do so, you need to learn how to set them correctly. And for that, we have some handy indications:

Share the right information: absolute disclosure can be counterproductive in some alliances. You need to identify the information that your associate needs to know and establish the right pattern in case of future necessity.

Create responsibility clauses: these are fundamental for any business alliance to work. Parts of the agreement need to know their responsibility in the deal and need to consider this as fundamental for their future operations.

Risk and benefit information: while it might seem like an obvious thing, business alliances need to sketch out the possible risks and benefits of any operation. This will avoid any misunderstanding as to the result of the association in the long run.

Establish a timely margin: creating unachievable margins of time and profit are a sure way to get into trouble. Associates need to know and believe the time margins for the operations, and all parties must agree to follow the plan towards the final goal.

Define believable goals: Don’t think with your imagination. You need to be pragmatic when it comes to establishing goals in your alliance. This will satisfy your associates and create trust with them.

Do you know some other things that can benefit a business alliance when it comes to setting rules? Let us know in the comments or through the social media profiles listed below. Remember that Coagro Corp is a company that focuses on establishing business associations with several parties to ensure speedy delivery and quality in the trading business. Check their website for more information!

The rules of any business operation need to be set out in advance.

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