The Noah Project

Rebuilding a sustainable world.


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Anti-GMO Movement Flourishing

Lots of news today on the anti-GMO front. NASDAQ notes that the right-to-choose movement is gaining strength and may be negatively impacting Big Food Stocks:

Companies like Monsanto — the dominant producer of most genetically modified corn, soybean, and cotton seeds — see its revenues tied to extreme weather conditions that affect crop yields, not consumer sentiment. In fact, analysts predict a rise in corn seed pricing in fiscal 2014, which will likely lead to higher Monsanto revenues. Yet when Monsanto slipped below its 200-day moving day average of $97.94 in late May, following the announcement of this fall’s “March Against Monsanto,” scheduled for October 12, 2013 in 250 cities and 36 countries, some analysts said that the drop was a result of the extreme negative sentiment. Others pointed to the fact that it was also a time when the market as a whole was weak. Either way, the stock never recovered and is currently trading at around $95.10 as of August 15. Some predict that momentum has weakened in the face of negative press, which continues to escalate. The company is also subject to a court ruling against it in Brazil where it stands accused of overcollecting royalties. Currently the decision is under appeal, but if it fails, the case could result in a $2 billion payout due for restitution.  Continue reading