Agribusiness Investing: Monsanto Bombs and Corn in a Maze
1) Monsanto (NYSE:MON) shares continue to get mowed down. After reporting disappointing earnings this week, shares have been in a textbook downtrend from $73.70 to $66.50. That’s a very quick loss of 9.75%.
2) Corn has exploded to all-time highs, but traders are getting greedy on supply expectations. The USDA left its ending inventories estimate unchanged at 675,000,000 bushels (a 5% stocks/use ratio), but traders desire complete scarcity.
3) Syngenta (NYSE:SYT) And Bayer CropScience Limited have signed a co-development agreement “on an HPPD herbicide tolerance trait for soybeans. The trait is in early development with launch in North America expected in the second half of this decade. By incorporating tolerance to HPPD herbicides, and thereby enabling the use of leading weed control products, the new trait will provide a powerful mode of action for weed control and the management of weed resistance, particularly to glyphosate. The trait will have significant potential for out-licensing as well as in the companies’ respective branded seeds businesses.”
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