Tags: China | Imports | Monsanto | Soybeans

China Said to Clear Imports of Monsanto GM Soybeans

Monday, 10 Jun 2013 08:22 PM

Shares of Monsanto Co., the world’s largest seed company, climbed the most in 17 months Monday, after Argentina and Brazil said China has agreed to accept imports of the company’s genetically modified Intacta soybeans.

Monsanto rose 4.5 percent to $106.25 at the close in New York, the biggest gain since Jan. 5, 2012.

China approved imports of Intacta soybeans and some other engineered crops, Argentina’s agricultural minister said in a June 8 statement and Brazil’s agriculture ministry said in an e- mail Monday.

Intacta may add $1.30 a share to Monsanto earnings by 2017 as sales begin in Brazil next year and Argentina the following year, said Cooley May, an analyst at Macquarie Capital USA Inc. who upgraded the shares to a buy rating from hold in a note Monday.

"This checks the single most important box in our Monsanto investment thesis," Vincent Andrews, a New York-based analyst at Morgan Stanley who recommends buying the shares, said in a June 9 note. "Intacta is the key opportunity to get paid for soybeans in South America, and it is the key 2014-plus growth driver, with the potential for $2 of incremental EPS."

Kelli Powers, a spokeswoman for St. Louis-based Monsanto, said the company can’t immediately confirm China’s import approvals.

Intacta is the first seed Monsanto has created specifically for the Latin American market. It's engineered to kill insects by producing an insecticidal protein derived from Bacillus thuringiensis, or Bt, a technology similar to one widely used in corn and cotton.

Monsanto doesn't get paid in Argentina for sales of Roundup Ready soybeans, which are genetically altered to tolerate applications of Roundup weedkiller, due to an intellectual property dispute. The company's 2013 earnings forecast includes no royalties for Roundup Ready soybean sales in Brazil because of a patent dispute there.

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Shares of Monsanto Co., the world's largest seed company, climbed the most in 17 months Monday, after Argentina and Brazil said China has agreed to accept imports of the company s genetically modified Intacta soybeans.
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2013-22-10
Monday, 10 Jun 2013 08:22 PM
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