Press Releases

Monsanto (NYSE: MON) and Syngenta (NYSE: SYT) Signal Pause In Seed Boom

Monsanto (NYSE: MON) and Syngenta (NYSE: SYT) have boomed over the last 12 months as the market priced in rising profits in seed markets due to biofuels and food demand raising the company's pricing power and product timeliness.

Yet as the debate over whether biofuels lead to food shortages and whether the impetus on biofuels will be decreased has cast a bit of uncertainty on the seed sector, making the two stocks a bit less sure of themselves lately.

As with all momentum trades, this one is no different. It can't go on forever. But, it doesn't necessarily have to stop when the majority expects it to do so.

That means that we could be in a temporary pause and that the technicals are important. For now, both stocks remain in up trends, and are above their 50 day moving averages. Breaks below those key support levels would be of some concern.

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