Monsanto, for a third time, raised its forecast for full year earnings – but the upgrade received a muted response from investors who have already factored in a bigger profits number.

The world's biggest seeds group - which last month lifted its estimate for earnings per share in the year to the end of August to $4.42-4.52 a share on an as-reported basis – on Wednesday raised the forecast further, to $4.52-4.57 a share.

The upgrade was down to "overall full-year growth in the company's global corn portfolio", reflecting a rush by farmers to grow the grain in the face of depleted world inventories, and "better-than-expected strength" in the herbicides division, whose products include Roundup weedkillers.

The performances offset the impact of a cut in takings in cotton, of which plantings have dropped in the US and many other leading producing countries, besides a "decreased year-over-year contribution" in Brazilian soybeans, the subject of a legal wrangle.

Further growth

Hugh Grant, the Monsanto chairman and chief executive, cited upbeat prospects for the next financial year, forecasting "continued strong growth… over a multi-year horizon.

"We're confident in projecting strong earnings growth in fiscal year 2014, even at this relatively early point," Mr Grant told investors.

Growth is being boosted by the extra take up of corn in Latin America and Eastern Europe, and in new genetically modified soybean seeds.

Market reaction

However, the comments received a muted response from investors who were already expecting Monsanto to report earnings of $4.66 a share this financial year, and of $5.30 a share in the year to August 2014.

Monsanto shares stood 1.2% lower at $104.328 in morning deals in New York.

agrimoney.com