Whatever DBS's usual strengths as a market mover, the logic of their arguments in this instance is sound. Here again are some extracts from their report as cited by the Guardian:
"We see a two-tier grain market developing with GMO (genetically modified organisms) corn and soybeans at a discount to non-GMO. Very bad news for farmers.
"* If a two-tier market takes hold, we see price premiums for high-value-added GMO seeds collapsing. Very bad news for seed companies.
"* If GMO seeds become a liability rather than a driver of growth, we see growth rates and valuations coming down. Very bad news for seed stocks.
"* Despite the fact that the science and logic in support of GMOs is very strong, GMOs are being demonized by their opponents. What food manufacturer will "take a bullet" for GMO corn in the face of such controversy?
"* We're calling into question the valuations of the seed-related companies. Is this a sector one should be invested in?"
Carl