From Reuters via AgCanada:
Monsanto Co reported weaker-than-expected quarterly earnings on
Thursday and said low crop prices hurting farmers’ incomes would limit
the company’s ability to profit from sales of its genetically engineered
seeds and agricultural chemicals.
The outlook makes the world’s biggest seed company the latest
agribusiness to detail ongoing pressures from large crop inventories
that are weighing on commodity prices following four years of bumper
harvests.
Monsanto, which is being acquired by Bayer AG , does not have “great
hope for significant price improvement” for its U.S. corn seeds, Chief
Executive Hugh Grant told analysts on a conference call.
U.S. farmers are facing corn prices around $3.50 a bushel, down from
more than $8 in 2012, making it harder for companies to sell
higher-priced seeds, fertilizer and equipment that can produce bigger
yields.
“It is a tough year, so everybody is fighting for the last acres,” Grant said.
His comments came a day after commodity trader Cargill Inc reported that large crop inventories had hurt earnings for its global grain handling business....MORE
