Biotech Values

[DewDiligence]

MON’s SmartStax Bests Older Varieties in Midwest Corn Belt

[The Midwest corn belt, consisting of Iowa, Illinois, Indiana, and the southern portions of Michigan and Minnesota, is the largest and most productive corn-growing region in the world. Because planting occurs later in this region than in corn-growing areas in the southern and western US, the harvest also occurs later and the initial 2010 yield data are just coming in now.

Although yield comparisons such as the ones in this PR should be taken with a grain of salt because it’s easy for vendors to cherry-pick the data, I think it’s fair to say that investors’ reaction to MON’s initial SmartStax data from the southern US in late September was unduly bearish (#msg-54977420). Since bottoming on 9/30/10 in the wake of the initial SmartStax data, MON’s share price has gained 28% and CEO Hugh Grant made another large open-market purchase (#msg-55718049).

(This PR also has encouraging yield data about RR2Y soybeans, but these data are less consequential to investors than the data for SmartStax.)]

http://finance.yahoo.com/news/Field-Trial-Results-in-Key-prnews-3543799089.html?x=0&.v=1

›Field Trial Results in Key Relative Maturities Exhibiting Yield Advantages of Monsanto Genuity® SmartStax® Corn Hybrids

Genuity® Roundup Ready 2 Yield® Soybean Field Trial Data Continue to Exhibit Significant Yield Boost Over Competitive Roundup Ready® Varieties

October 25, 2010, 9:07 am EDT

ST. LOUIS, Oct. 25, 2010 /PRNewswire-FirstCall/ -- With U.S. harvest continuing to progress rapidly, field trial results in key relative maturities demonstrate that corn hybrids with Monsanto Company's (NYSE:MON) Genuity® SmartStax® trait are out-yielding the industry's leading triple-stack corn trait technology.

In field trial comparisons, the Genuity SmartStax corn hybrid portfolio in the 90 to 105 relative maturity days is exhibiting an average yield advantage of approximately four bushels per acre across Iowa, Illinois, Indiana, Michigan and Minnesota in nearly 4,000 comparisons when compared with the YieldGard VT Triple® hybrid portfolio. This figure excludes the whole-farm yield advantage that Genuity SmartStax may provide through reduced refuge, which can be estimated in a range of 1.5 to 3 bushels per acre, based on previous field trials and experience. [I.e., the refuge-adjusted SmartStax advantage is 5.5-7 bushels per acre.] The majority of the Genuity SmartStax product offerings and volume of 2010 sales were in these shorter-maturity regions.

"Even in a year where certain insect pressure is relatively low, these results validate that Genuity SmartStax can offer farmers a performance edge, providing even greater confidence under more typical insect pressure," said Dr. Ted Crosbie, Monsanto's vice president of global plant breeding. "Combine that with the industry's most complete package of insect control and the ability to dramatically reduce the refuge requirement to 5 percent in the Corn Belt, and Genuity SmartStax offers a compelling package."

Field trials indicate trait efficacy continues to be the industry standard, as evidenced by improved consistency of corn rootworm protection under heavy pressure. Based on thousands of root digs over two years, more than 98 percent of the Genuity SmartStax roots that were rated for corn rootworm injury, scored below the threshold at which yield is adversely impacted, compared to just 70 percent for Herculex® Xtra.

Despite particularly heavy corn earworm pressure in many parts of the Midwest, the Genuity SmartStax trait package is delivering a consistent level of protection. [Well, that’s what it’s supposed to do.] Early data indicate a 78 percent reduction in damaged kernels for Genuity SmartStax versus the refuge hybrid [MON's own VT Triple] and a 70 percent reduction in damaged kernels compared to Herculex Xtra [DuPont’s triple-stack product].

Additionally, with U.S. soybean harvest nearing completion, early harvest results from key soybean growing states of Illinois, Indiana, Iowa, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin indicate that the top-performing 181 Genuity Roundup Ready 2 Yield soybean varieties tested across these states exhibit an average yield advantage of more than three bushels per acre, with a greater than 70 percent win rate, when compared with competitive Roundup Ready soybean varieties [i.e. compared to first-generation Roundup Ready seeds]. These preliminary data are based on 16,000 head-to-head comparisons in on-farm commercial and breeding trials. The company will use its findings to select and deploy the best products for the 2011 season.

Broad variety testing is an important annual process. Each year, Monsanto tests hundreds of corn hybrids and soybean varieties across thousands of research plots throughout the United States. These tests result in tens of thousands of comparisons with the leading competitive corn and soybean products. Analysis of these data enables Monsanto to identify and narrow the pool of varieties to be sold commercially in a given geography the following year.

This update is part of an ongoing series of Monsanto reports throughout the harvest season, culminating with complete harvest results on November 8, 2010. For additional information, please visit the following website at: www.monsanto.com/productperformance. Farmers can also follow product news and performance online at: www.asgrowanddekalb.com and www.genuity.com.‹