Monsanto under federal investigation

The US Department of Justice has issued an investigative demand for information on Monsanto's key soy genetic traits business after complaints that the company was trying to limit access to push a new, pricier product instead.

Monsanto said it was cooperating with investigators and would allow farmers and seed companies continued access to its first-generation Roundup Ready soy trait following the product's patent expiration in 2014.

Seed dealers, rivals and others have accused Monsanto of creating conditions, through contracts with seed dealers and other means, that would unfairly push farmers to buy its new Roundup Ready 2 Yield soy and away from the first-generation, lower-priced Roundup Ready beans.

The fresh demand notice from investigators comes amid a larger probe into competition in the agriculture industry and a specific look at the seed industry, where Monsanto The Justice Department and the USDA will be holding five hearings later this year to discuss fair play and concentration in agricultural marketing.

Analysts say signs point to a limited probe by regulators and that a formal lawsuit will not be filed.

News that the Justice Department was seeking information on market access to the Roundup Ready trait comes a week after rival DuPont specifically asked US regulators to gain assurances from Monsanto regarding the Roundup Ready trait access. The trait is a genetic alteration that Monsanto developed to make soy withstand treatment of Monsanto's Roundup herbicide.

DuPont, which owns Pioneer Hi-Bred International, has also complained that Monsanto is unfairly using monopoly powers to drive up prices and hinder competition in the broad corn and soy markets.