US corn syrup producers offering rare price cuts for next year as falling sugar prices eroding their competitive advantage in marketplace
November 11, 2013
– U.S. corn syrup producers are offering rare price cuts for next year as falling sugar prices are eroding their competitive advantage in the marketplace, Thomson Reuters Corp. reported Nov. 10.
According to letters seen by Reuters, Cargill Ltd and Archer Daniels Midland Co. are starting negotiations with high-fructose corn syrup customers over next year's supply contracts with price cuts of 10%.
While corn syrup has a U.S. market share of 52%, its competitive cost edge is now under threat because U.S. sugar prices are languishing at multiyear lows as the North American market remains flush with supplies.
The primary source of this article is Thomson Reuters Corp., London, England, on Nov. 10, 2013.