Flagging corn seed sales in South America and the lingering downturn in the glyphosphate market have dumped Monsanto in the red for a second successive quarter.

The seeds and sprays giant reported a loss of $19m for the September-to-November period, compared with earnings of $556m a year before.

The result, which fell short of Wall Street forecasts of Monsanto hitting breakeven, reflected a 36% slump to $1.70bn in revenues, led by sprays division.

Sales of Roundup, Monsanto's branded glyphosphate herbicide, tumbled 63% to $509m, thanks to the market's "imbalance" after a ramp up in global production of white label product.

Monsanto is cutting prices, and costs, in its Roundup division in an effort to increase sales volumes and exploit its "low-cost production advantage".

South America slide 

However, while the glyphosphate market's problems have been well flagged, the Monsanto also revealed a slide in sales at its bigger seeds division, led by its core corn and soybean businesses.

Corn sales slid 9.4% to $569m, a fall "due in a large part to a decrease in planted acres in Brazil and Argentina as a result of drought, governmental policies and commodity prices".

Many South American farmers have switched to soybeans, whose prices have proved particularly robust, from corn, which in Argentina also faces an export tax.

"With the second season ahead in Brazil, there may be some rebound in total acres, but all-in planted acres are expected to be down for the year in both Brazil and Argentina," Monsanto said.

Delayed purchases

A 5.2% fall to $201m in sales of soybean seeds reflected the late US harvest, which had concentrated farmers' minds on the 2009 crop rather than 2010 plantings.

However, the sales volumes would be made up in the current, December-to-February quarter, Monsanto said.

The group stuck by its full-year forecast for full-year results despite its first-quarter loss, and said it was "confident" of meeting longer-term targets.

Monsanto shares recovered from early weakness to close up 1.5% at $86.27 in New York.