Low sugar prices

Johannesburg
Illovo Sugar Ltd and Tongaat Hullett, Africa’s two biggest producers of the sweetener, reported weaker full-year profits on Monday, blaming softer global prices and lower output, sending their shares sliding.
Lower export prices to key regions such as the European Union were worsened by the weakening of the euro and the Brazilian real as well as weaker production in South Africa.
Shares in Illovo dropped 8 percent to 969 rand, their lowest in six years and biggest daily fall since 2004. Smaller rival Tongaat fell 0.7 percent to 174 rand. The sugar industry has grown increasingly competitive in recent years due to excess supplies and a crowded marketplace.
World sugar prices are languishing near the lowest levels in more than six years below 13 cents per pound.
The South African sugar producers said they were forced to sell their commodity at a loss due to low prices and high operating costs while countries such as Brazil produce cheaply and flood the market.