World Soybean Price Falls on News
of Mysterious DNA in Monsanto's
Frankenbeans

August 16, 2001
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Soybeans Dip Amid News On GMO Makeup

By DYANNA DECOLA

From: DOW JONES NEWSWIRES

CHICAGO -- Soybean prices at the Chicago Board of Trade got hammered
Thursday as a news article reignited fears about the safety of genetically
modified soybeans.

Reports stating that a Belgian scientist discovered an unknown DNA sequence
in Monsanto Co.'s Roundup Ready soybeans sent the market into a tailspin.

"Soybeans got clobbered, which took many of us by surprise," said one floor
soybean broker. "We were looking for a continuation of the previous
session's uptick in prices."

Soybean prices had gained ground on Wednesday on ideas of a smaller 2001
crop and on threatening weather forecasts. But Thursday news that the
world's most widely-grown GMO crop was under fire sent prices tumbling.

CBOT November soybeans, the most active futures contract, plummeted 13.25
cents to close at $4.9975 per bushel.

It is estimated that more than half the soybeans grown in the U.S. are
Roundup Ready, which contains a gene that allows the soy plants to withstand
Monsanto's Roundup herbicide.

Greenpeace is now reportedly calling for countries to reevaluate the
regulatory process of the GMO soybeans. But Monsanto said in a news
statement that U.K. regulatory authorities have no objections regarding this
DNA sequence in its Roundup Ready soybeans.

Monsanto said that it stands by the safety of Roundup Ready soybeans because
the DNA sequence mentioned in the scientific paper was already present in
original crops subject to safety tests when the product was launched.

Despite the sell-off in the soybean pits, there is mixed reaction as to how
long the story will play out in the marketplace.

One trader said the market will most likely discount the news and switch the
focus back to the weather as "it sounds like the reports were manipulated by
Greenpeace."

Many are confident the soybean market will recover once traders have a
chance to digest Monsanto's response to the claims.

"The FDA tells AgResource that this strand will not change their approval
rating for Roundup Ready soybeans," said Dan Basse, executive vice president
of AgResoure & Co. in Chicago. "It's the same genetic make-up of the soybean
that was approved by the U.S., the E.U. and a host of other nations five
years ago."

But, some traders in Chicago said even if Monsanto's claim of safety proves
true, the news could still have negative implications in the marketplace.

"This was a bombshell because it raised fears of another Starlink
situation," said Victor Lespinasse, a floor grain trader with A.G. Edwards
in Chicago. "The market is concerned foreign buyers will shy away from U.S.
beans in the wake of the news."

The negative news surrounding GMO soybeans brought back nightmares for many
traders who said even though they don't believe fallout of story will
compare to the Starlink corn shakedown, it still has the potential to slow
exports.

"Countries could use this as a trading wedge or political tool, whether or
not it proves true," said one corn broker. "Just like many did with
Starlink, I suspect we'll see some continue to manipulate the story to push
prices down even further."

Exports suffered and prices plummeted in the wake of the discovery of
Starlink corn in some food products and in shipments heading to Japan.
Starlink corn is a genetically-modified corn variety that is approved for
animal consumption, but not for human food.

-By Dyanna DeCola, Dow Jones Newswires;

312-341-9045; <dyanna.decola@dowjones.com>