Syngenta Could Benefit Off Monsanto
October 01, 2010 7:59 AM
Citi has studied the trial data released by Monsanto (NYSE: MON) on the yields produced from its products. With around 25% of the corn harvested, its old triple stack corn has outperformed the new Smartstax. If the technology can be made to work consistent with research trials, it should deliver benefits.
Syngenta (NYSE: SYT) is the alternative technology provider to Monsanto in corn. Syngenta has a new rootworm trait in development for commercialisation from 2014. It has alternative, competitive technology offerings to Monsanto.
In 2011, Syngenta is launching a multi-stack corn that incorporates its new broad spectrum insect control trait, VipTera, that offers refuge reduction and a refuge in a bag offering from 2012. U.S. growers may also choose to
invest in fungicides in 2011 as well, given the proven yield boost that was foregone this year. This would help it too. Longer-term, seed competitors may also be more prepared to in-license and use its trait technology.
SYT closed Thursday at $49.79
