Monsanto profit misses estimates

Monsanto Co reported weaker-than-expected quarterly earnings on Thursday and said low crop prices hurting farmers' incomes would limit the company's ability to profit from sales of its genetically engineered seeds and agricultural chemicals. The outlook makes the world's biggest seed company the latest agribusiness to detail ongoing pressures from large crop inventories that are weighing on commodity prices following four years of bumper harvests.
US farmers are facing corn prices around $3.50 a bushel, down from more than $8 in 2012, making it harder for companies to sell higher-priced seeds, fertilizer and equipment that can produce bigger yields. In the fiscal first quarter ended November 30, net profit attributable to Monsanto rose to $169 million, or 38 cents per share, from $29 million, or 7 cents per share, a year earlier. Total net sales were nearly flat at $2.658 billion, below analysts' expectations for $2.77 billion.