Seeds of growth
Two of Monsanto's critical growth sectors were corn seeds and agricultural productivity, which includes pesticides and herbicides. Corn saw 46% growth over the prior year, and agricultural productivity sales were up by 34%. The segments are Monsanto's largest as a percentage of total sales, but cotton seeds also saw explosive sales growth, up 73% from last year. With corn futures not far off all-time highs, expect this segment to remain in high demand through the year (barring any commodity price collapse).
Pushing into Latin America is a way to offset weak off-season periods in the Northern Hemisphere, and should help the company maintain its technological lead through more consistent earnings. Monsanto is doing very well in research, boasting 14 advancements across a variety of developments, a stated record.
A rising tide
As one of the market's major agricultural bellwethers, Monsanto's outperformance should lift a handful of well-positioned fertilizer companies. Look for CF Industries
People won't stop eating anytime soon, and continued growth in both commodity and fertilizer prices ought to keep the industry in bloom throughout the year. Keep your eye on these companies -- add them to your Watchlist now for all the important news and analysis you need.
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