The group, the world's largest seed company, reported earnings of $6m for the September-to-November quarter, compared with a $19m loss a year before, on sales up 7.8% at $614m.

While still weak by historical standards, even for a period which is typically one of Monsanto's softest, the earnings, equivalent to 2 cents a share, matched Wall Street expectations and raised hopes that the group had drawn a line after a difficult 2010.

Indeed, S&P Equity lifted its target on Monsanto shares from $71 to $55 following the results, the latest in a series of upgrades for the stock.

Soleil analysts this week lifted their recommendation on the stock to "buy", while Buckingham Research Group raised its price target for the shares to $80 from $72.

Monsanto shares rose 5.1% to $72.64 in early deals in New York before easing to close at $70.79, up 2.4% on the day, their highest finish since late March, taking their rebound from a trough four months ago nearly to 50%.

'Tracking targets'

The in-line results for the first quarter of Monsanto's 2011 financial year follow a series of disappointments in fiscal 2010, when the group was dogged by tough competition in the market for glyphosates, the class of generic weedkiller including Roundup, and questions in the US over the yield benefits offered by some of its cutting edge corn seed.

However, a revamp of the Roundup business helped glyphosate sales rise 2.7% to $523m in the latest period, with gross profits also returning to growth, of 8.0% to $94. The unit's profits in fiscal 2010 plunged by more than 90%.

In seeds, Monsanto flagged volume increases for corn seeds in the US, where the order book was tracking "well" with acreage targets.

Nonetheless, growth of 7.9% in seed revenues was led by Latin American takings, and by sales in the cotton market spurred by Australian farmers' switch to cotton in the face of higher prices. Australian cotton sowings more than doubled to 557,000 hectares in 2010-11, according to official data.

Farmer interest

Hugh Grant, the Monsanto chief executive, said the group was "executing against the areas most important to our business growth", notably in Latin America and the US.

"Our early US order books show farmers are interested in our newest products," he said.

The group stuck by a target of earnings per share of $2.69-2.79 for its full financial year.