The agriculture behemoth reported quarterly earnings Tuesday morning that blew past analysts' estimates, helped by growth from its Latin American corn business and early momentum in the United States.
Monsanto's stock rocketed more than 4% higher, nearly breaching the $100 mark -- a level not touched since 2008!
Shares pulled back a bit as the day wore on, which may partly be due to the company's guidance. While Monsanto upped its outlook, the numbers were still a little shy of what analysts are hoping for.
"We've achieved a successful start to the year, with contributions from multiple areas that speaks to the strength of our global business," said Monsanto CEO Hugh Grant.
Last year, the Midwestern United States faced its worst drought in 56 years, hurting crops and sending corn prices surging to record highs. At the same time, Monsanto said it was seeing strong U.S. orders in the latest quarter.
Corn is a big part of Monsanto's growth, with fiscal third quarter sales of corn seeds and traits rising 27% to $1.1 billion.
StockTwits popped with traders' comments.
That may be another reason the stock has pulled back from its earlier high. Until the planting (and growing) is underway, investors may not want to count their kernels before they're popped.
Truer words were never spoken.
Investors are a fickle bunch and to quote Jerry Maguire, they want companies to "Show me the money!" So far, it seems like Monsanto is on the right track.
Investors will have to wait until the end of the month to see if fertilizer giant Potash (POT) can jump on the bandwagon.
Corn prices climbed to a record high Thursday, staging a fresh rally as investor gear up for the U.S. government's latest snapshot on corn production due Friday morning.
"Analysts are making some pretty dire predictions," said Sal Gilbertie, chief investment of Teucrium Trading, which runs the Teucrium Corn ETF (CORN).
Corn prices are up more than 60% over the last seven weeks as the worst drought in more than half a century blankets the MOREHibah Yousuf - Aug 9, 2012 2:03 PM ET
Corn prices surged to a new record high Tuesday, as the worst drought in more than 50 years continues to plague more than half the country.
Almost 90% of the United States' corn crops are in drought ravaged areas, according to the U.S. Department of Agriculture, and nearly 40% are situated in the hardest hit spots.
Corn prices have soared more than 50% during the past six weeks as the crops continue MOREHibah Yousuf - Jul 31, 2012 9:55 AM ET
Corn prices have soared more than 40% in recent weeks as the scorching, dry heat wreaks havoc on crops in the Midwest.
Prices went as high as $7.33 per bushel of corn on the Chicago Board of Trade Monday, not far from the record high of $7.9975 hit last June, amid worries about flood damage. Prices eased slightly Tuesday, as investors await the U.S. Department of Agriculture's updated forecast for harvest yields, which is due MOREHibah Yousuf - Jul 10, 2012 11:52 AM ET
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