Syngenta forecast a relaxation in the competitive conditions in the herbicide market which dragged its own sales down 8% in the first quarter, and have tripped up rivals such as Monsanto.

The world's largest agrichemicals company said that the "high" global stocks of glyphosate weedkillers would decline now that the northern hemisphere's spring planting season was "progressing well".

Business in crop protection products "improved noticeably towards the end" of the January-to-March quarter, the Swiss-based group said.

The fall in inventories would reduce the pressure which drove Syngenta's sales of glyphosphate and other broad-based herbicides down 29% to $232m in the first three months of the year.

Many competitors have also been caught out by the oversupply of glyphosate, caused by buoyant production by generic manufacturers last year at a time when demand from farmers was curtailed by tight credit and lower crop prices.

Monsanto last week unveiled an 84% slide in profits at its sprays division, maker of the Round Up glyphosphate brand.

Brighter outlook 

The weak glyphosphate performance led a decline of 2.6%, to $3.53bn, in Syngenta's group sales for the quarter, a larger decline than the 1.8% expected by analysts.

Takings in the seeds division fell 1.7% to $1bn, reflecting a hangover from strong sales in the previous quarter when North American farmers got ahead in purchases.

However, Syngenta said it expected sales volumes to start growing again in the current quarter, and stood by a forecast of growth in full year operating profits.

Profits would benefit from "lower raw material costs, favourable currency movements and further margin enhancement in seeds".

'Positive reaction'

The forecasts helped ease investors' nerves over the weak sales, and prompted Credit Suisse analysts to forecast a "positive reaction" to the trading update and help Syngenta play catch up after a period of weak performance.

The stock has fallen by 6.6% over the last month, and by 8.6% against its sector.