Monsanto Antitrust Investigation
Monsanto (NYSE:MON) has come under the scrutiny of a number of states who are investigating the biotechnology company over antitrust issues.
The first of a number of meetings will be held Friday, where talks on genetically-modified soybean and corn seeds will take place, as the seeds are used in about 80 percent of U.S. corn grown and 90 percent of soybeans grown in the U.S.
Much of this centers around prices charged by the company for its seeds, which users say are high because of the lack of competition, thus the antitrust aspect of the investigation.
Competitors, as usual, are also behind the push to look at Monsanto, which needs to be taken into consideration.
They create a great product, farmers love it, then gripe about the prices. And competitors gripe because Monsanto has a second-generation soybean seed in the pipeline awaiting as their existing patent runs out.
The specific seed that will really be the primary focus is the Roundup Ready soybean seed which allows farmers to spray Roundup weedkiller on their crops without them being harmed by it. Monsanto also owns the Roundup brand.
It's like the fact Monsanto has created another great product which other companies aren't able to match is their fault for being good at what they do, and so much be put under antitrust investigation as a consequence.
Monsanto Antitrust Investigation
Showing posts with label Corn Seed. Show all posts
Showing posts with label Corn Seed. Show all posts
Wednesday, March 10, 2010
Tuesday, March 2, 2010
Corn Futures Down on Dollar, Inventory
Corn Futures, Dollar, Corn Inventory
Corn futures dropped again as the stronger U.S. dollar made investments and exports unattractive, and the significant global corn inventory has left no base to work from.
As with wheat, as mentioned in my last post, when the prices of grains surged in 2008, farmers seeded huge amounts of wheat, corn, soybeans and rice, which all but assured there would be downward pressure on grain prices in the years ahead.
I'm not sure why the farmers continue to do this, or if they're being told wrongly, but farmers need to understand that if they put huge seedings of crops in the year after a big price increase, they can be sure huge numbers of farmers around the world will do the same.
While there is always the possibility of weather having a devastating impact on some crops, as last year showed, there was so much grain on the market that even when their were droughts or other weather problems, there was so much available it didn't have much of an impact.
With corn this is the story, and will continue to be a bearish story until some farmers drop planting it based on past performance.
Eventually there will be major demand around the world for food, but we are far from that with grains at this time, even though analysts and wealthy investors like Jim Rogers tout food and agriculture in general as a great future investment.
It will be all of that, but when farmers plant far more than global demand warrants, we're always going see downward pressure on corn futures and other grains until it corrects itself.
Corn Futures, Dollar, Corn Inventory
Corn futures dropped again as the stronger U.S. dollar made investments and exports unattractive, and the significant global corn inventory has left no base to work from.
As with wheat, as mentioned in my last post, when the prices of grains surged in 2008, farmers seeded huge amounts of wheat, corn, soybeans and rice, which all but assured there would be downward pressure on grain prices in the years ahead.
I'm not sure why the farmers continue to do this, or if they're being told wrongly, but farmers need to understand that if they put huge seedings of crops in the year after a big price increase, they can be sure huge numbers of farmers around the world will do the same.
While there is always the possibility of weather having a devastating impact on some crops, as last year showed, there was so much grain on the market that even when their were droughts or other weather problems, there was so much available it didn't have much of an impact.
With corn this is the story, and will continue to be a bearish story until some farmers drop planting it based on past performance.
Eventually there will be major demand around the world for food, but we are far from that with grains at this time, even though analysts and wealthy investors like Jim Rogers tout food and agriculture in general as a great future investment.
It will be all of that, but when farmers plant far more than global demand warrants, we're always going see downward pressure on corn futures and other grains until it corrects itself.
Corn Futures, Dollar, Corn Inventory
Friday, February 12, 2010
Monsanto (NYSE: MON) Will Meet Profit Targets
Monsanto (NYSE: MON)
Monsanto Co. announced this week that the profit targets they set for themselves should be reached for the year.
After taking charges for restructuring, the company said they're on track for earnings of $3.10 to $3.30 a share in 2010.
Thomson Reuters analysts had estimates at the high end of those Monsanto projections, with expectations of $3.28 a share.
As for their crop strategy, they are focused primarily on soybean and corn products going forward, and are continuing to look forward to increasing growth in Latin American countries; their major growth markets.
Monsanto (NYSE: MON)
Monsanto Co. announced this week that the profit targets they set for themselves should be reached for the year.
After taking charges for restructuring, the company said they're on track for earnings of $3.10 to $3.30 a share in 2010.
Thomson Reuters analysts had estimates at the high end of those Monsanto projections, with expectations of $3.28 a share.
As for their crop strategy, they are focused primarily on soybean and corn products going forward, and are continuing to look forward to increasing growth in Latin American countries; their major growth markets.
Monsanto (NYSE: MON)
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