Technical Analysis on Monsanto and Agrium: Agriculture Chemical Stocks Move Up

Feb 20, 2013, 08:00 ET from StockCall.com

LONDON, February 20, 2013 /PRNewswire/ --

As the agriculture sector is recovering from the previous year's dire conditions,agriculture chemical stocks are also in a revival mode. However,besides unpredictable weather,these companies are also dealing with a wide variety of other problems. Monsanto Company (NYSE: MON) is currently enmeshed in a patent case. Though,the case is likely to go in the company's favor,the uncertainty may still take its toll on the stock price. Agrium Inc. (NYSE: AGU),on the other hand,is dealing with activist investor issues as its biggest shareholder Jana Partners seem to be intent on getting its way. However,despite these developments,both companies are on a growth trajectory. StockCall has posted free technical research on Monsanto and Agrium which can be downloaded upon sign up at

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Agrium to Increase Urea Capacity

Agrium is entangled in a dispute with Jana Partners, which is the company's largest shareholder. Jana Partners wants Agrium to make fundamental changes to its business like spinning off its retail units and change its board constitution. The tussle has been going on for a long time as the company has been forced to increase its dividend last year under pressure from Jana. Similarly, it also had to buy back its shares aggressively. Despite this conflict, the stock grew 30 percent in the past 52 weeks. It is accompanied by a 0.92 percent dividend yield. The free report on Agrium Inc. can be downloaded by signing up now at

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Agrium is enhancing both its retail and wholesale units. From 2014 onwards, the company plans to boost its urea capacity. Urea price are on an upward trajectory and the increase in production will help the company in boosting its position. These catalysts are expected to have positive impact on the stock price. The company also expects its phosphate shipments to increase this year.  

Agrium is also looking to profit from emerging markets. The company expects Urea demand to remain robust, mainly due to increased demand in the markets such as India. The company also expects seed demand to be strong this year as high corn price may induce famers to undertake more plantation this year. Given the robust performance and healthy outlook, Agrium is projected to keep performing well.

Monsanto Offers Good Dividend Yield

Monsanto's stock is up 28 percent in the past 52 weeks. It also offers about 1.5 percent dividend yield. The company recently announced 37.5 cents per share dividend. This is payable on April 26th and the record date has been set at April 5th. The stock is expected to perform well as the company is well positioned in its segment and enjoys considerable cost advantage. Sign up and read the complimentary report on Monsanto Co. at

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The company is growing organically as well as through acquisitions as it recently acquired part asset of Agradis. While the companies did not disclose the financial terms, they signed research collaboration agreement as well. Under the terms of the deal, Monsanto Company acquired a portfolio of microbes, which may help it in offering better solutions to its clients.

Monsanto is facing patents issues. The company is fighting a legal battle with an Indiana farmer. While the case does not involve significant pecuniary investment, but the ruling will be important in setting up a precedence about the reuse of protected crop seeds.

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