MON Falls After Unfavorable Results For SmartStax

Shares of Monsanto Company MON fell sharply after disappointing results in SmartStax, its genetically-modified corn seed. The company is concerned about the effect of the unfavorable results on its 2011 results. According to Jefferies & Co, SmartStax planted in the state of Iowa is behind its prime competitors in bushel yields. The research firm said, "Overall, underperformance by 3% to 5%, if duplicated across the rest of the central corn belt and across the entire harvest, would be a disappointing result." Jefferies & Co said in a note, "While we believe this risk is largely factored into the company's mid-teens earnings outlook, farmer credits could become a headwind to FY11, particularly if SmartStax yields in the northern regions disappoint." Shares of MON lost 6.76% to $49.48 at 11:02 am. Read more from Benzinga's Company news.