Corteva (CTVA) Stock Jumps And Falls Quickly: A Bearish Signal?

Corteva’s stock over the last five days was strongly volatilizing; on Tuesday, the trading session was closed at its peak of $43.83 after it dramatically slumped to $41.66, losing 4%. Currently, the price slightly rebounded to almost $42.49. Corteva is launching new genetically modified (GMO) soybeans at a leading soybean producer in Brazil, where competitor Bayer AG has been a de facto monopoly since GMO cultivation began in the early 2000s. Bayer has an extensive network of sales staff and long-standing relationships with farmers, seed developers, and growers in Brazil, a Corteva relationship just being established.

In this way, Bayer and Corteva aim to convert Brazilian growers to new generation GMO seeds that can tolerate new herbicides. At stake are billions of dollars in annual sales of seeds and herbicides to the important Brazilian market. Bayer and Corteva do not produce seeds themselves in Brazil. Instead, local genetic improvement companies adopt new varieties for the local market, considering local soil and climatic conditions – a process that can take years. The seed producers then mass-produce the seeds to sell to farmers for planting.

April Sanchez

Business and Tech Reporter