Syngenta May Be Hit by Chinese Ban on U.S. Corn Products: Citi
2014-06-12 08:26:22.684 GMT
By Chiara Remondini
June 12 (Bloomberg) -- Citi says 2014 looks challenging for
Syngenta as China import ban, lower grain prices affecting
agrochems mkt add to relative caution, according to note.
* Citi (neutral) says China’s ban on U.S. dried distillers’
grains (DDGs) is negative for Syngenta’s Viptera (MIR162)
trait as U.S. farmers may opt for approved GMO corn next yr
* Notes farmers have option to return unused seeds, co.
may have already lost shr due to earlier rejection of
corn seed
* Estimates co.’s 2014 U.S. corn seeds rev. ~4% of sales,
~60% (~$300m) contains Viptera
* Says gross margin on this product high, probably 85%;
any loss of rev. to have “material” impact on earnings
* Viptera (approved in U.S., EU, Japan, Mexico) has been
waiting for China’s approval for >3 yrs
* NOTE yday: U.S. corn stockpiles seen higher than ests.
* NOTE June 9: China said to suspend import permits for U.S.
corn product
* NOTE Jan. 23: Grain groups asked Syngenta to halt some corn-
seed sales in U.S.
For Related News and Information:
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First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Jurjen van de Pol
2014-06-12 08:26:22.684 GMT
By Chiara Remondini
June 12 (Bloomberg) -- Citi says 2014 looks challenging for
Syngenta as China import ban, lower grain prices affecting
agrochems mkt add to relative caution, according to note.
* Citi (neutral) says China’s ban on U.S. dried distillers’
grains (DDGs) is negative for Syngenta’s Viptera (MIR162)
trait as U.S. farmers may opt for approved GMO corn next yr
* Notes farmers have option to return unused seeds, co.
may have already lost shr due to earlier rejection of
corn seed
* Estimates co.’s 2014 U.S. corn seeds rev. ~4% of sales,
~60% (~$300m) contains Viptera
* Says gross margin on this product high, probably 85%;
any loss of rev. to have “material” impact on earnings
* Viptera (approved in U.S., EU, Japan, Mexico) has been
waiting for China’s approval for >3 yrs
* NOTE yday: U.S. corn stockpiles seen higher than ests.
* NOTE June 9: China said to suspend import permits for U.S.
corn product
* NOTE Jan. 23: Grain groups asked Syngenta to halt some corn-
seed sales in U.S.
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Jurjen van de Pol