Wed, Sep 17, 2014, 10:15 PM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Imperial Sugar Co. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • gallery_pup gallery_pup Feb 9, 2010 8:28 PM Flag

    Fundmental questions: does higher raw sugar price benefit earning???

    Like any refiner, as long as IPSU can pass through the higher wholesale cost via the retail price, margins will increase. But, when the wholesale price goes up faster than the retail price, margins get squeezed. So there is typically a lag in the retail price on the way up that have a negative effect on margins. If wholesale sugar maintains it higher price, it will pull the retail price up with it in catch-up mode.

    Once and IF sugar gets into a steady state at higher levels, increased production will also begin to favor margins.

    However, it's when the wholesale price starts to decline again, with retail prices slower to follow that margins widen once more.

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.