Back to top

Analyst Blog

Monsanto Company (MON - Analyst Report), an agricultural services provider, recently inked a cross-licensing agreement with Dow AgroSciences LLC, a subsidiary of The Dow Chemical Company (DOW - Analyst Report), in order to create a weed and insect control technology for corn. Financial terms of the agreement were not disclosed.

The agreement entitles Monsanto to use Dow’s Enlist Weed Control System, which allows corn to tolerate weed-killing chemicals, whereas in return, Dow will be able to reap the benefits of Monsanto’s upcoming Corn Rootworm III, which is useful in killing tiny insects that feed on corn roots.

This agreement has taken place to develop a new technology that will be used to thwart the resistance shown by crop-killing weeds and worms towards the existing technology. This new technology will be beneficial for the farmers in securing their crops against weeds and bugs.

The Enlist technology will be used for the first time in corn production, Monsanto being the first company to license it. The agreement will help in adding newer traits to the Monsanto-Dow co-developed SmartStax corn, which is used to control bugs as well as tolerate weed killers. This new development is expected to be of immense success to both the companies as the customer farmers will achieve better production results. Ensuing products will be competitively sold by the company that develops them.

Monsanto is involved in producing solutions and products that improve the agricultural quality and productivity. Dow AgroSciences is also involved in similar activities like developing crop protection and plant biotechnology solutions. A merger of technologies developed by these companies can bring about a rapid change in the agricultural industry, starting with corn. We expect these technologies to help both the companies prosper in the future.

Monsanto currently carries a Zacks Rank #2 (Buy). Other chemical stocks worth a look are Balchem Corp. ; carrying a Zacks Rank #1 (Strong Buy) and Andersons Inc. (ANDE - Analyst Report); carrying a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%