With AgFlow, I can benchmark my trades with the prices on the platform.
I saved $5 per Metric Ton on several transactions
and even $25,000 on one shipment.
That’s an ROI of over 500%
on the AgFlow subscription.
Ali Samei – Commodity trader
Tadarok Gostar Shomal is a small commodities trading business based in Iran, specializing in Malaysia Palm Oil, Ukraine Sunflower Oil, and Brazil Soybeans imports. They mainly buy from large ABCD distribution companies and resell to local Vegoil refineries and bean crushing plants.
To maintain their margins, Tadarok must buy commodities at the lowest price possible from their suppliers. To do so, they need to keep a close eye on the market daily, but Iran is subject to severe market data and information opacity due to the political landscape. In the past, once Tadarok had an idea about a market cash price, they would contact their suppliers to receive a quote. Doing so allowed them to monitor the premium they were being charged and potentially challenge it through negotiations. However, not only were they unable to regularly come up with a price benchmark, but when they did, the data was often outdated or represent an inaccurate proxy at best.
Ultimately, the company has ambitious growth targets and therefore needs to have access to the best global market data and information to achieve these.
Before joining AgFlow, Tadarok Gostar Shomal would use public data and Barchart to track CFR prices to Iran, but their data updates were quite often one day late, if not more.
AgFlow’s solution for
Tadarok Gostar Shomal
Tadarok Gostar Shomal became an AgFlow customer in October 2019. Since then, they have access to over 8,000 spot and forward cash prices per day across 75 commodities.
With access to such a varied and live cash price database, Tadarok traders can now use AgFlow FOB prices to negotiate offers from their suppliers every time they call them for a purchase.
Furthermore, whenever they were not entirely convinced about a cash price or wanted to know more about its source, AgFlow’s data and information transparency allowed them to directly contact the party who reported the data set or piece of information on the platform – AgFlow’s data contributor network consists of over 100 brokers, each of whom can be contacted to potentially become a business partner.
As a result of benchmarking their transactions with AgFlow prices, Tadarok Gostar Shomal’s trading team could save thousands of dollars. An excellent example of this was their ability to save $5 per Metric Ton on several transactions and up to $25,000 on a particular deal, which equates to a return on investment of over 500% on the AgFlow yearly subscription.
Furthermore, they are saving hours of physical cash price data collection every week. If they were to lose their access to the AgFlow platform, Tadarok’s deals would be far less profitable, and their business would suffer severely as a consequence.
Last but not least, AgFlow’s market data and information provide them with an overview of global markets, thereby aligning with their growth vision, enabling the trading team to venture into new market areas without too much risk since AgFlow provides them with an edge over other players.