Monsanto risked getting further into investors' bad books by unveiling wider-than-expected losses for its latest financial quarter, and a target for 2011 which fell short of Wall Street forecasts.

The seeds and sprays giant also bowed to the concerns over its top-of-the-range genetically modified corn seed, stating that the Genuity SmartStax line had "not demonstrated yield advantages" over a lower-range seed.

Investors' fears over Genuity SmartStax were blamed for a 13% slide in the group's share price last week.

However, Monsanto added that the seed had been planted mostly in northern US Corn Belt areas, where harvest is in its early stages, meaning there was "no projectable data" as yet.

Short of forecast

The comments came as the group unveiled a loss of $143m for the June-to-August period, the last quarter of the company's financial year, on revenues up 3.9% at $1.95bn.

While the loss, reflecting in the main spiking competition in the market for generalist glyphosate weedkillers, was narrower than the $233m a year before, on a per share basis, at $0.06, it fell short of Wall Street hopes of a $0.09-a-share loss.

And although Monsanto restated hopes of "mid-teens" growth for the new financial year, led by its seeds division, its forecast of full year earnings of $2.67-2.77 a share also fell short. Analysts have forecast a $2.84-a-share result, according to a ThomsonReuters poll.

Monsanto shares initially jumped 5% to $51.26 in New York.

"The outlook is not as great as it might have been, but Monsanto might have wanted to give itself room for upgrades later on. I think the market will allow for that," a London fund manager said.

However, the rally faded to leave the stock up 0.3% at $48.65 at the close.

'Revamped pricing' 

The group's revival hopes for next year were based on expectations of a more than doubling to "mid-teens millions of acres" in areas of US soybeans planted to the key genetically-modified brand.

The target was the same for sowings of Monsanto's cutting-edge corn products, which are to be boosted by a reworking of pricing structure, following widespread farmer complaints earlier this year over seed costs.

"We're backing new innovation with actions ranging from expanding launches of product offerings to our revamped pricing approach," Hugh Grant, the Monsanto chairman and chief executive, said.