Soy Bean Giant Monsanto Investigated Over Herbicide

Monsanto is cooperating with a Securities and Exchange Commission (SEC) investigation into its glyphosate herbicide business, CEO Hugh Grant said Wednesday.

The SEC is investigating customer incentive programs for glyphosate, which the company sells under its Roundup brand, in 2009 and 2010.

Monsanto said it has received a subpoena for documents and is cooperating with the investigation, which Grant said in a conference call was in "the early days." Grant added that he could not provide any more "color" on the matter, and declined to say why the investigation was being handled by the SEC, and not the Department of Justice.

The company's herbicide business suffered from 2009-2010, thanks to a flood of cheap generic imports from China. Last year, the company said it was de-emphasizing the glyphosate business and focusing more squarely on being a seed company.

Monsanto's genetically-modified corn and soybean seeds are built in part around crop resistance to glyphosate, which has allowed farmers to more easily control weeds.

Investors shrugged aside the news, focusing instead on Grant's announcement of a 77 percent rise in profit for the fiscal third quarter, beating analyst expectations and reversing some of last year's lost market share. 

Shares were recently up 4.4 percent to $69.84.

The company's results "clearly signal that Monsanto has closed the door on prior year difficulties," Morgan Stanley analyst Vincent Andrews wrote in a note to clients.