U.S. Justice Dept. continues probe of Monsanto

KANSAS CITY Oct 8 (Reuters) - Monsanto Co. (MON.N) said it was cooperating with ongoing inquiries from the U.S. Justice Department about allegations it illegally dominates the market for genetically modified seeds.

But a company spokesman denied reports on Thursday that a formal inquiry was underway.

"We've not received a formal demand...a subpoena or anything like that," Monsanto spokesman Lee Quarles said. "They've just asked us questions."

Justice has been making inquiries since at least the Spring, Quarles said, when rival DuPont (DD.N) alleged in a lawsuit that Monsanto was illegally controlling the seed market.

He denied an Associated Press report that the probe had been upgraded to a formal inquiry.

Monsanto shares fell about 1 percent in after hours trading on the New York Stock Exchange to $74.17.

St. Louis-based Monsanto, the world's largest seed company, is a frequent target of farmers' ire for the steep price increases it has implemented on its popular corn and soybean seed technology - genetic modifications that help farmers maximize yields and efficiencies.

Farm groups and competitors have also complained that Monsanto has a broad hold on the market, squeezing competition and leaving farmers few choices for cheaper seeds.

DuPont has complained that Monsanto's actions in the industry are illegal, and in August both the U.S. Department of Agriculture and the Justice Department said they were launching an examination of competition and antitrust concerns in the seed industry.

Monsanto pegs its market share for its branded corn seed at about 36 percent, and says branded soy seed enjoys a 29 percent share and cotton a 41 percent share in the United States.

But DuPont and other critics say that, through licensing deals with about 200 other companies, Monsanto's genetic traits are spread through nearly all of the U.S. corn, soy and cotton acres planted each year. (Reporting by Carey Gillam, editing by Leslie Gevirtz)