With almost everything going against it, Monsanto (NYSE:MON) may get some help from the recent corn yield estimates which were about 25 percent lower than projected, which should inevitably drive corn prices up even more.
One of the major and successful strategies of DuPont (NYSE:DD) has been to put in the minds of farmers whether or not the added traits of Monsanto's SmartStax corn is worth the extra price.
When early returns from the field revealed yields were lower for SmartStax corn, that added fuel to the fire, and Monsanto is left wondering, along with their shareholders, where future growth was going to come from.
Now that the overall corn yield in the U.S. is far lower than expected, and corn prices sure to increase, that leaves higher margins for farmers to work with, which may persuade them to give Monsanto another try.
Of course DuPont will probably respond to that challenge and lower their prices to gain even more market share.
Even so, if yields are enough to generate interest from more northerly fields, which haven't revealed results yet, Monsanto just may get an unexpected boost from higher corn prices.
That could also include higher soybean prices as well, where soybean yields are over 20 percent lower than estimates too.
Showing posts with label Genetically Modified Corn. Show all posts
Showing posts with label Genetically Modified Corn. Show all posts
Tuesday, October 12, 2010
Tuesday, September 28, 2010
Monsanto (NYSE:MON) Plunges on SmartStax Concerns
Monsanto (NYSE:MON) are taking a big hit again today as what appears to be ongoing concerns over genetically modified corn seed brand SmartStax.
Farmers have been gradually moving away from some Monsanto seed in general because of the way the company marketed them, as well as high prices.
Major competitor DuPont (NSYE:DD) has also successfully embedded the question in the minds of farmers over whether or not the extra traits of the seed is worth the extra cost, implying their seed, while having less traits, still produces well for farmers.
Developing new pipelines is becoming a challenge for Monsanto because of legal issues as well as the economic environment we're in.
But with corn prices rising during the summer, if farmers didn't acquire the seed strongly when margins aid the sales, it has to be extremely concerning for Monsanto on how to position themselves going forward.
If SmartStax hasn't yielded the sales and earnings expected, as a number of analysts believe, Monsanto will have to downwardly revise their profit targets, which the market now seems to be pricing into the shares at this time.
Monsanto dropped to $48.03, down $5.04, or 9.50 percent at 2:11 PM EDT.
Farmers have been gradually moving away from some Monsanto seed in general because of the way the company marketed them, as well as high prices.
Major competitor DuPont (NSYE:DD) has also successfully embedded the question in the minds of farmers over whether or not the extra traits of the seed is worth the extra cost, implying their seed, while having less traits, still produces well for farmers.
Developing new pipelines is becoming a challenge for Monsanto because of legal issues as well as the economic environment we're in.
But with corn prices rising during the summer, if farmers didn't acquire the seed strongly when margins aid the sales, it has to be extremely concerning for Monsanto on how to position themselves going forward.
If SmartStax hasn't yielded the sales and earnings expected, as a number of analysts believe, Monsanto will have to downwardly revise their profit targets, which the market now seems to be pricing into the shares at this time.
Monsanto dropped to $48.03, down $5.04, or 9.50 percent at 2:11 PM EDT.
Friday, June 4, 2010
Will Monsanto (NYSE:MON) Benefit from GM System Changes in EU?
While ultimately all companies producing and selling genetically modified (GM) seed will benefit, it's thought that Monsanto (NYSE:MON) could be the chief beneficiary of the proposed changes in the European Union approval system.
With some like Goldman Sachs' (NYSE:GS) analyst Robert Koort believing the bad news related to Monsanto is "exhausted," it could be a good step toward a long-term positive outlook for the company and industry.
The basics of the new proposal are to to make it easier to approve new GM varieties in Europe, while at the same time broadening the powers of EU governments in deciding if they will allow the seed and crops to be grown in their prospective countries.
This is good news for Monsanto in that even if a few countries approve of their products it could be a major breakthrough in the region for them, as there has only been two GM crops approved in the EU in a decade, with a potato being a recent one.
Monsanto could benefit from this over the long-term, as in the near term it's not likely to have much impact other then the future potential included with the changes.
With some like Goldman Sachs' (NYSE:GS) analyst Robert Koort believing the bad news related to Monsanto is "exhausted," it could be a good step toward a long-term positive outlook for the company and industry.
The basics of the new proposal are to to make it easier to approve new GM varieties in Europe, while at the same time broadening the powers of EU governments in deciding if they will allow the seed and crops to be grown in their prospective countries.
This is good news for Monsanto in that even if a few countries approve of their products it could be a major breakthrough in the region for them, as there has only been two GM crops approved in the EU in a decade, with a potato being a recent one.
Monsanto could benefit from this over the long-term, as in the near term it's not likely to have much impact other then the future potential included with the changes.
Saturday, May 15, 2010
Syngenta's (NYSE:SYT) NK 8840 Genetically Modified Corn Starting Field Trials
Syngenta (NYSE:SYT) is about to start field trials in the Philipines for its genetically modified corn, registered as NK 8840.
The new corn seed will produce crops resistant to the corn borer and other insects which suck and destroy crops. Estimated yields for the crop are from 10 to 14 metric tons per hectare.
Recher Ondap, Syngenta Philippines country head for seeds, said in an interview that it should be ready to launch in 2012, “We will have field trials in the third and fourth quarter of the year. We are set to commercialize it by late 2012.”
Included in the corn is high-strength GM Bacillus thuringiensis, or Bt, which pretty much stops most caterpillar type pests very quickly. There is more pest protection with the additional treatment of Cruiser on the seeds.
This particular corn variety also has strong resistance to herbicides, so they can also be sprayed when needed and not suffer damage.
The new corn seed will produce crops resistant to the corn borer and other insects which suck and destroy crops. Estimated yields for the crop are from 10 to 14 metric tons per hectare.
Recher Ondap, Syngenta Philippines country head for seeds, said in an interview that it should be ready to launch in 2012, “We will have field trials in the third and fourth quarter of the year. We are set to commercialize it by late 2012.”
Included in the corn is high-strength GM Bacillus thuringiensis, or Bt, which pretty much stops most caterpillar type pests very quickly. There is more pest protection with the additional treatment of Cruiser on the seeds.
This particular corn variety also has strong resistance to herbicides, so they can also be sprayed when needed and not suffer damage.
Saturday, May 8, 2010
Syngenta (NYSE:SYT) Battling Monsanto (NYSE:MON) with Viptera Corn Seed
Syngenta AG (NYSE:SYT) is ready to increase its share of the corn seed market, when it directly attacks Monsanto (NYSE:MON) with its introduction of genetically modified Viptera corn seeds next year.
At this time Syngenta has an 8.5 percent share of the corn seed market in the United States, and they think this could move that percentage up significantly.
The corn seed is insect and weed killer resistant, and CEO Michael Mack claims the new corn seed has "the best trait in the marketplace for the control of those insects” which attack corn.
Regulators gave approval to Viptera in April.
At this time Syngenta has an 8.5 percent share of the corn seed market in the United States, and they think this could move that percentage up significantly.
The corn seed is insect and weed killer resistant, and CEO Michael Mack claims the new corn seed has "the best trait in the marketplace for the control of those insects” which attack corn.
Regulators gave approval to Viptera in April.
Friday, April 23, 2010
Monsanto's (NYSE: MON) India Corn Trials
Monsanto (NYSE: MON) will always be a company that takes two steps forward and one step back, as fears over the genetically modified seeds they offer make it slow going as far as introducing new products into different parts of the world.
That's the same in India, where brinjal is yet to be approved, while a new variety of corn is being tested which includes Bacillus thuringiensis as an insect control mechanism, where the gene is injected into the corn, and a protein would also be added to the corn to protect it against herbicides.
Bacillus thuringiensis is a natural ingredient normally used against worm-type of pests, like the tomato horn-worm that attacks the fruit.
Corn is of course susceptible to worms as well, the reason for including it in the corn.
Assuming the trials go well, the new corn will be introduced into India in 2012-2013. There aren't any expected roadblocks along the way that would interfere with the process going forward.
That's the same in India, where brinjal is yet to be approved, while a new variety of corn is being tested which includes Bacillus thuringiensis as an insect control mechanism, where the gene is injected into the corn, and a protein would also be added to the corn to protect it against herbicides.
Bacillus thuringiensis is a natural ingredient normally used against worm-type of pests, like the tomato horn-worm that attacks the fruit.
Corn is of course susceptible to worms as well, the reason for including it in the corn.
Assuming the trials go well, the new corn will be introduced into India in 2012-2013. There aren't any expected roadblocks along the way that would interfere with the process going forward.
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