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Origin Agritech Bags $35M Order For Hybrid Corn

Benzinga · 07/27/2022 12:38
  • Origin Agritech Ltd (NASDAQ:SEED) has received an order for its hybrid corn worth RMB240 million, or about $35 million, from Muyuan Foods.
  • Muyuan Foods, a hog farming company, purchases over 50 million metric tons of corn feedstock annually.
  • The initial order is part of a 100 million metric ton purchase agreement signed for the next 5 years.
  • The companies have agreed to collaborate to grow Origin's Nutritionally Enhanced Corn (NEC) on contract, beginning in the 2023 growing season. 
  • At present, Muyuan is contract growing about 3 million mu, or roughly 494,000 acres of farmland to plant hybrid corn and other feed crops in China.
  • Price Action: SEED shares are trading higher by 3.17% at $10.40 on the last check Wednesday.