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p.p.

The Cost Of Maize Rises = 1 Third Off Tate And Lyle's Share Price

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http://uk.biz.yahoo.com/28092007/214/secto...-tate-lyle.html

Tate & Lyle's gloomy trading statement this morning, in which it warned of a small half year loss in its sugar business and significantly higher maize costs in Europe, has sent the brokers scurrying to revise their earnings estimate for the sugar giant.

currently -29% on the day

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Crazy market, they have no choice but raise their prices, which they will.

Might be one to watch, one of only a few commodity-like plays on the UK market.

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Crazy market, they have no choice but raise their prices, which they will.

Might be one to watch, one of only a few commodity-like plays on the UK market.

Can anyone explain the connection between Maize & Tate & Lyle? It's not immediately clear to me.

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Razzle Dazzle

The group also warned that higher maize costs in Europe will, if sustained, have 'an increasingly severe effect' on the profitability of its ingredients division.

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Razzle Dazzle

The group also warned that higher maize costs in Europe will, if sustained, have 'an increasingly severe effect' on the profitability of its ingredients division.

So is maize rising because people are growing bio fuels?

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So is maize rising because people are growing bio fuels?

If this is maize from Europe I would guess its down to bad crops or maybe the crops are becoming more expensive to produce ... who knows.

Talking of bio fuels did anyone see Bruce Parry in Boneo during the week ... the poor old forest people ain't gonna have no forest left before long :(:(

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Blah-dee-blah-dee-blah!

So maize is up in price, like oil. And yeah, consumer spending in the world's largest economy is also raging ahead.

Add in the 50bp cut in the Fed funds rate

BUT, the important thing to remember is that inflation excluding the cost of living and wages (and anything else of significance) has fallen in the US from 2.5% to 1.8% yoy

:blink:

... run that one by me again will you :huh:

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I did think it cheerful the other day to see that the EU will stop paying subsidies for farmers growing nothing as they'll be allowed to grow crops again. Hurray!

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It is mad. I've been watching T&L for a while now looking for an opening into them and the food sector. Thing with Tate and Lyle is that they've consistently disappointed investors over the last few years so this could be their proverbial back-breaking straw. Yields on the food sector are usually pretty rubbish but with this huge share price drop the yield is now above 5%

Full statement is here:

http://www.investegate.co.uk/Article.aspx?...0928070000Z2191

Payday for me today so I'm very close to hovering over the buy button.

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Can anyone explain the connection between Maize & Tate & Lyle? It's not immediately clear to me.

y

Hello Razzle Dazzle - Tate and Lyle produce sugar from sugar cane. However, the also process starch to make sugar syrups- so called high fructose corn syrups etc. The starch comes chiefly from maize. Incidentally, maize is also used a lot in beer production in the UK too. Maybe a more expensive pint ?

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If this is maize from Europe I would guess its down to bad crops or maybe the crops are becoming more expensive to produce ... who knows.

Talking of bio fuels did anyone see Bruce Parry in Boneo during the week ... the poor old forest people ain't gonna have no forest left before long :(:(

Cheers lufc.

The weather hasn't been good for wheat either, obviously.

I didn't see it, but it is my belief that in trying to make things better (vis a vis global warming), all we will do is make things environmentally much worse in ways that we didn't foresee.

There was some guy misreported on the bbc who was actually saying that the deforestation caused by the dash to "green" bio-fuels was basically driving a particular monkey/ape to extinction. The BBC managed to spin this to say that climate change was to blame. As reliable on that as they are with HPC.

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I think they use the maize for corn starch for some sort of isomerose product that makes sweeteners which they are no longer allowed to export to the EU. I also think that that their sugar trading desk must have made a pig's ear of the market this summer. But this was a a big surprise

http://stocks.us.reuters.com/stocks/recomm...Recommendations

Even last Friday no analyst was saying sell, sell, sell its going to drop more that 25pct or even just a quiet sell.

I'd have thought that TATE would have been a good defensive product, never really moving more that 1pct in a day.

Wrong, eh!

I wonder who's next, maybe I'll have a look and Proctor and Gamble and Unilever and see if their traders have been doing any better.

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y

Hello Razzle Dazzle - Tate and Lyle produce sugar from sugar cane. However, the also process starch to make sugar syrups- so called high fructose corn syrups etc. The starch comes chiefly from maize. Incidentally, maize is also used a lot in beer production in the UK too. Maybe a more expensive pint ?

Oh nackers, looks like I'll not be having Frosties for a while :(

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