A soft probe is the lowest-commitment communication in the commodity trade chain. It is an informal, non-binding inquiry — usually a brief message or email — from a buyer, intermediary, or their representative asking whether a seller has a specific product available at a given price and volume.
Where the Soft Probe Fits in the Trade Process
A full commodity deal follows a staged document chain. The soft probe comes first:
- Soft Probe — informal interest check (no commitment)
- LOI (Letter of Intent) — formal expression of interest, low commitment
- FCO / RWA — seller's formal offer or readiness statement
- ICPO — buyer's irrevocable purchase order (binding)
- SPA — Sales and Purchase Agreement (full contract)
- Payment instrument — SBLC / DLC issued
- SGS inspection + delivery — product loaded, documents exchanged
Why Soft Probes Are Abused in Petroleum Markets
A typical fraudulent soft probe chain works as follows:
- An intermediary (Broker A) receives a soft probe from a supposed buyer
- Broker A sends the same probe to Broker B, adding 1–2% commission
- Broker B passes it to Broker C, adding another 1–2%
- After 5–10 steps, the original $800/MT EN590 becomes $950/MT before it reaches any real seller
- No real product exists — only a chain of emails
Hard Probe vs. Soft Probe
| Feature | Soft Probe | Hard Probe |
|---|---|---|
| Binding on buyer? | No | Yes (with mandate) |
| Documents required | None | Mandate letter, POF, buyer ID |
| Seller response | Indicative FCO | Formal FCO / RWA + CoP |
| Used by fraudsters? | Frequently | Rarely |
| Typical stage | First contact | Pre-ICPO due diligence |
Red Flags in Soft Probe Responses
- Seller asks for an ICPO immediately, before providing any FCO or RWA
- Price is significantly below market (EN590 at $200/MT discount to Platts)
- Seller claims "tank-to-tank" transfer without SGS inspection
- Seller insists on a specific broker chain or "mandate"
- Response arrives within minutes, regardless of time zone
- Email domain does not match the company name in the FCO
Best Practice for Buyers
When sending a soft probe, include: product, grade, quantity, delivery terms (FOB/CIF), price range, and preferred payment instrument. This filters out non-serious sellers immediately. Require a formal FCO with tank storage details within 24–48 hours before engaging further.
The Skyra CIP Approach
Skyra CIP eliminates the soft probe chain problem entirely. All participants are KYC-verified and credentialed before accessing the deal flow. Buyers connect directly with verified suppliers — no intermediary chains, no phantom probes.
Frequently Asked Questions
- What is a soft probe in commodity trade?
A soft probe is an informal, non-binding preliminary inquiry used to test a potential counterparty's interest, pricing, and product availability before any formal document — such as an ICPO or LOI — is issued. It carries no legal obligation for either party and is used at the earliest stage of a trade relationship.
- What is the difference between a soft probe and a hard probe?
A soft probe is informal and non-binding — used to gauge interest and confirm pricing. A hard probe is a formal, documented due diligence request backed by a mandate letter, proof of funds, and verified buyer identity. Hard probes commit the buyer to a process; soft probes do not.
- Why are soft probes problematic in EN590 and petroleum trading?
In petroleum markets, soft probes are frequently abused by broker chains. A chain of 5–10 intermediaries will pass the same soft probe along the chain, each adding a commission markup, with no genuine product or verified buyer behind the inquiry. This creates phantom deal pipelines, wastes seller resources, and is a major source of fraud in the diesel market.
- Is a soft probe legally binding?
No. A soft probe has no legal standing. It does not constitute an offer, acceptance, or contract under any jurisdiction. It is a pre-commercial communication only. Only formal documents — ICPO, SPA, DLC, SBLC — carry legal weight.
- How do I respond to a soft probe professionally?
Legitimate sellers respond to soft probes with an FCO (Full Corporate Offer) or RWA (Ready, Willing and Able) letter, which specifies product, quantity, price, delivery terms, and validity. They do not ask for payment, advance fees, or sensitive banking documents at this stage.