Monsanto Sees Advantage in U.S. Drought Testing Corn Output

Monsanto Co., the world’s biggest seed company, said it stands to gain from the worst U.S. Midwest drought in a decade because the difficult conditions may demonstrate its superior yields and create seed shortages for competitor.

Drought may cut seed output at smaller U.S. competitors, while Monsanto has the option of shipping more seed from Latin America, Chief Executive Officer Hugh Grant said today on a conference call to discuss third-quarter earnings. Monsanto also stands to win new customers who see the company’s seeds outperforming the competition in hot weather, he said.