Monsanto Reaches Soybean Deal with Brazilian Farmers - Shares Up 1%, Sets 52 Week High

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Monsanto Co. ( MON ) has hit a new 52-week high of $102.98 on news that it and leading grower organizations in Brazil have reached an agreement that will support the introduction of next-generation products like INTACTA RR2 PRO soybeans.

Shares of MON are off the high, but are still up 0.5% to $102.93

According to terms of the agreement, participating Brazilian farmers will secure a new license that will allow them to purchase soybeans containing the new INTACTA RR2 PRO technology, expected to be available in the 2013-2014 growing season. The agreement also underscores the grower associations' support for continuing a royalty collection approach, which ensures that growers pay royalties each time they use the technology.

The agreement also provides clarity on first-generation Roundup Ready soybeans for participating farmers. Those farmers will be released from payment of technology royalty fees for first-generation Roundup Ready soybeans for this and next season, while waiving all potential legal claims for payments previously made for this first-generation technology.

Farmers who elect to not participate will continue to pay royalties on that technology through the term of MON's intellectual property rights in Brazil that cover the first-generation Roundup Ready soybeans.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: MON

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