Shares in Monsanto slumped by 10% on Tuesday amid talk that some of the group’s top-of-the-range corn seed, genetically modified to protect against insect pests, was delivering disappointing yields.
Laurence Alexander, an analyst at Jeffries & Co in New York, said that SmartStax corn seed, which Monsanto claimed was its “the highest yield corn available”, was yielding less than cheaper seeds with fewer added genes, to judge by harvest reports from Iowa.
“While it is still early to assess the field data… the initial data is weaker than we expected,” Mr Alexander, who rates Monsanto shares a “hold”, said.
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The Street (30 June 10)