Dow Chemical (DOW) and Monsanto (MON) have combined to develop a one of a kind corn seed. Using Monsanto’s recent earnings release, we can start to put some hard numbers to it possible effect.
Here is a previous post on the subject
This is from Monsanto’s earnings presentation on 10/8:
So, if we have 50-65 million possible acres for the product selling at $130 and acre (assuming no prices increases down the road, unlikely) we can get a market of $6.5 to $8.4 billion dollars for the two companies.
When people ask me why I am so positive on Dow, it is because of the Ag division with products like this, the solar division with its new shingles, an earnings profile being altered from basic to specialty chemicals (with the acquisition of Rohm & Haas) and the fact they can still sell that basic commodity business for substantial dollars.
Monsanto earnings call transcript