SOURCE: Paragon Financial Limited

Paragon Financial Limited

December 07, 2011 08:16 ET

Volatile Sugar Prices Weigh on Imperial Sugar and Cosan Limited

The Paragon Report Provides Equity Research on Imperial Sugar & Cosan Limited

NEW YORK, NY--(Marketwire - Dec 7, 2011) - The confectioners industry has been volatile in recent weeks as steep declines in the price of Cocoa and Sugar have helped some companies, while others are seeing their margins squeezed. The Eurozone debt crisis has caused a noticeable decline in demand, and led some confectioners to step back in the market. The Paragon Report examines investing opportunities in the Confectioners Industry and provides equity research on Imperial Sugar Company (NASDAQ: IPSU) and Cosan Limited (NYSE: CZZ). Access to the full company reports can be found at:

This year the price on sugar has already declined close to 30 percent as compared to 2010, mostly due to higher supply and lower demand. For example, India's sugar output rose by 17 per cent to 2.16 million tons in the first two months of the 2011-2012 season, even though crushing operations were delayed in Maharashtra, industry body ISMA.

Though the falling price of sugar is a relief for many candy makers, it has hurt confectioners like Cosan. The Brazilian sugar producer also uses sugar cane to produce ethanol. With some politicians in Washington calling for an end for corn subsidies this year, companies making ethanol from sugar cane could see a significant boost in demand.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Confectioners industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Imperial Sugar Company, together with its subsidiaries, processes and markets refined cane sugar in the NAFTA region. It refines, packages, and distributes granulated, powdered, liquid, and brown sugars under Dixie Crystals, Imperial, and Holly brand names, as well as under private labels.

Shares on Imperial Sugar have been on the downswing since the company announced that it suspended payment of its regular quarterly dividend of $0.02 per common share until further notice "in light of the continued pressure on its gross margins and liquidity primarily caused by sustained high raw sugar prices and competitive refined sugar pricing."

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