In its latest trading update, AB Sugar acknowledges that operating profit will be down by some £20 million “driven by declining European sugar prices”. This hit the Associated Brition Foods (the parent company) share price, which fell by 56 pence to £26.21. The analyst Berenberg was quoted in The Guardian as saying “We had expected EU sugar contract prices to fall from €640 per tonne in the current sugar marketing year (October- September) to €525 for the upcoming year. However, current spot prices and industry contacts suggest contracts are being negotiated at around €450, effectively wiping out profits in the… Login to continue

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