Corn price warning drives Tate & Lyle to four-year low
(Daily Telegraph) -- Tate & Lyle, the struggling sugar and sweeteners group, slumped to a four-year low Wednesday after Citigroup warned about the impact of soaring corn prices.
Tate & Lyle's corn starch is used to sweeten a wide variety of products from cereals to fizzy drinks but Citi believes it will struggle to pass on higher costs over the next couple of years. Corn prices have jumped by 25pc in the last six weeks alone because of the recent floods in the US and Citi analyst Eamonn Ferry predicts Tate & Lyle's corn costs are set to double by 2010. Tate & Lyle shares fell 22¼ to 402¼p.
Tate & Lyle's corn starch is used to sweeten a wide variety of products from cereals to fizzy drinks but Citi believes it will struggle to pass on higher costs over the next couple of years. Corn prices have jumped by 25pc in the last six weeks alone because of the recent floods in the US and Citi analyst Eamonn Ferry predicts Tate & Lyle's corn costs are set to double by 2010. Tate & Lyle shares fell 22¼ to 402¼p.