Monsanto settles Argentine soy import case

* Monsanto withdraws claim of patent breach by soy importers

* Decision taken ahead of European court of justice ruling

* Company says Argentina "best place" to solve dispute

BRUSSELS, July 5 (Reuters) - Monsanto (MON.N) has withdrawn a legal complaint against European importers of processed soybean meal from Argentina, which the company had claimed breached the EU patent on its Roundup Ready soybean seeds.

Monsanto -- the world's largest seed company -- settled its case against Dutch importer Cefetra and commodities traders Alfred C. Toepfer International, shortly before a European Court of Justice (ECJ) judgement in the case was due on July 6.

"Monsanto, Cefetra and Alfred C. Toepfer International reached an out of court settlement in the case that was subject to the referral to the ECJ. Monsanto has withdrawn its claims," a spokesman for the company told Reuters in an emailed statement on Monday.

Monsanto gave no details of terms of the settlement.

In 2008 a Dutch court asked the ECJ for an opinion on whether the presence of Monsanto's DNA sequence in the soymeal constituted a breach of its EU patent.

The ECJ was widely expected to rule against Monsanto's claim, after a senior court adviser said the company's seed patent should not extend to cover imports of processed soybean meal to Europe in a preliminary ruling in March. [ID:nBRU010691]

At stake is more than 3 billion euros ($4.03 billion) of annual trade in Argentine soymeal to Europe. The South American country is the world's top soymeal exporter and the EU is its biggest client. Monsanto filed the lawsuit in the Netherlands after its Roundup Ready DNA sequence was discovered in three soymeal shipments from Argentina in 2005 and 2006.

Monsanto has no patent in Argentina, but the majority of farmers there use the company's seeds, which are genetically modified to resist its Roundup Ready herbicide.

"We continue to believe that the best place for a resolution in these matters is in Argentina, and will continue working with all stakeholders in Argentina for a fair and equitable solution," the company's spokesman said. (Reporting by Charlie Dunmore)