DuPont seeing the benefit on seed sales

Seed costs are rising along with soybean and corn prices. Grains' gains haven't gone unnoticed by the agribusiness sector, which is counting on profitable planting seasons ahead as farmers try to boost crop yields in response to low stockpiles and surging global demand.

On Friday, E.I. DuPont de Nemours reported flourishing sales within its North American agricultural seed business, which came on the back of hefty price hikes.

"As expected, sales volume gains along with double-digit seed price increases and a strong outlook for the North American seed business will be a primary driver of at least 15% cumulative average earnings growth rate of the DuPont Agriculture & Nutrition business through 2013," said Frank Ross, president of the company's Pioneer seed division. The update follows a bullish report from the U.S. Agricultural Department on Wednesday showing tight soybean supplies in the near-term and lower corn production and yields in the coming season due to weather-related planting delays.

This year, Pioneer expects corn sales volume growth of 7% to 8%, soybean sales growth of 10% to 12% and canola volume growth in the range of 38% to 40%.

DuPont shares lost 35 cents, or 1.3%, to $26.76, during Friday's afternoon session. Shares across the agribusiness sector traded lower as a stronger U.S. dollar made commodities more expensive for foreign buyers and encouraged some profit-taking after soybeans soared to nine-month highs following the USDA report. Soybeans for July delivery shed 21 cents to $12.46 a bushel in afternoon trading on Friday and July corn lost 16 cents to $4.25 a bushel.

 
Rival Monsanto lost 27 cents, or 0.3%, to $86.58 and the Market Vectors Agribusiness  exchange-traded fund was trading down by 46 cents, or 1.2%, at $37.93.