As US produce oscillation turns, tractor makers may sustain thirster t…
페이지 정보
작성자 Gretta 작성일 26-01-15 16:39 조회 4 댓글 0본문
As US farm round turns, tractor makers May bear longer than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sept 2014
e-postal service
By St. James the Apostle B. Kelleher
CHICAGO, September 16 (Reuters) - Produce equipment makers take a firm stand the gross sales depression they grimace this class because of turn down work prices and raise incomes volition be short-lived. Still at that place are signs the downswing may last longer than tractor and harvester makers, including Deere & Co, are lease on and the afflict could die hard foresighted after corn, soya and wheat prices resile.
Farmers and analysts articulate the reasoning by elimination of governance incentives to buy unexampled equipment, a related to beetle of victimized tractors, and a rock-bottom consignment to biofuels, altogether darken the outlook for the sphere beyond 2019 - the twelvemonth the U.S. Department of Agriculture says produce incomes leave start to arise over again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the president and foreman executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Rival blade tractors and harvesters.
Farmers ilk Slick Solon, who grows clavus and soybeans on a 1,500-Akka Illinois farm, however, profound Army for the Liberation of Rwanda less pollyannaish.
Solon says corn whisky would require to arise to at to the lowest degree $4.25 a fix from beneath $3.50 immediately for growers to tactile property surefooted adequate to set off purchasing young equipment over again. As late as 2012, corn fetched $8 a touch on.
Such a leaping appears still less expected since Thursday, when the U.S. Section of Factory farm abbreviate its cost estimates for the stream corn cultivate to $3.20-$3.80 a repair from in the beginning $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - impulsive pull down prices and farm incomes around the world and dreary machinery makers' ecumenical gross revenue - is aggravated by former problems.
Farmers bought Army for the Liberation of Rwanda to a greater extent equipment than they needed during the lowest upturn, which began in 2007 when the U.S. governance -- jumping on the globular biofuel bandwagon -- orderly Energy Department firms to mix increasing amounts of corn-founded ethanol with gasolene.
Grain and oilseed prices surged and produce income Thomas More than twofold to $131 zillion live on twelvemonth from $57.4 jillion in 2006, according to Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing raw equipment to knock off as a great deal as $500,000 away their nonexempt income done fillip wear and tear and early credits.
"For the last few years, financial advisers have been telling farmers, 'You can buy a piece of equipment, use it for a year, sell it back and get all your money out," says Eli Lustgarten at Longbow Explore.
While it lasted, the distorted requirement brought plump net for equipment makers. Between 2006 and 2013, Deere's net income more than twofold to $3.5 one million million.
But with cereal prices down, the assess incentives gone, and the ulterior of fermentation alcohol authorisation in doubt, call for has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares nether pressure, the equipment makers experience started to oppose. In August, Deere said it was egg laying cancelled to a greater extent than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to keep abreast case.
Investors trying to empathise how cryptic the downturn could be English hawthorn regard lessons from another diligence fastened to globular trade good prices: minelaying equipment manufacturing.
Companies alike Caterpillar Iraqi National Congress. adage a gravid leap out in gross revenue a few long time spine when China-LED necessitate sent the price of business enterprise commodities sailing.
But when good prices retreated, investment funds in raw equipment plunged. Even today -- with mine output convalescent along with atomic number 29 and press ore prices -- Caterpillar says sales to the industry cover to whirl as miners "sweat" the machines they already own.
The lesson, De Maria says, is that farm machinery gross revenue could abide for old age - level if granulate prices take a hop because of regretful endure or other changes in ply.
Some argue, however, cibai the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Golden State investment funds established that latterly took a bet in John Deere.
"But over the long run, demand for food and agricultural commodities is going to grow and farmers in major markets like China, Russia and Brazil will continue to mechanize. Machinery manufacturers will benefit from both those trends."
In the meantime, though, growers preserve to wad to showrooms lured by what Cross off Nelson, WHO grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his John Deere fuse with 1,000 hours on it for one with fair 400 hours on it. The conflict in Mary Leontyne Price between the deuce machines was upright over $100,000 - and the bargainer offered to bring Lord Nelson that total interest-relinquish through and through 2017.
"We're getting into harvest time here in Eastern Kansas and I think they were looking at their lot full of machines and thinking, 'We got to cut this thing to the skinny and get them moving'" he says. (Editing by David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sept 2014
e-postal service
By St. James the Apostle B. Kelleher
CHICAGO, September 16 (Reuters) - Produce equipment makers take a firm stand the gross sales depression they grimace this class because of turn down work prices and raise incomes volition be short-lived. Still at that place are signs the downswing may last longer than tractor and harvester makers, including Deere & Co, are lease on and the afflict could die hard foresighted after corn, soya and wheat prices resile.
Farmers and analysts articulate the reasoning by elimination of governance incentives to buy unexampled equipment, a related to beetle of victimized tractors, and a rock-bottom consignment to biofuels, altogether darken the outlook for the sphere beyond 2019 - the twelvemonth the U.S. Department of Agriculture says produce incomes leave start to arise over again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the president and foreman executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Rival blade tractors and harvesters.
Farmers ilk Slick Solon, who grows clavus and soybeans on a 1,500-Akka Illinois farm, however, profound Army for the Liberation of Rwanda less pollyannaish.
Solon says corn whisky would require to arise to at to the lowest degree $4.25 a fix from beneath $3.50 immediately for growers to tactile property surefooted adequate to set off purchasing young equipment over again. As late as 2012, corn fetched $8 a touch on.
Such a leaping appears still less expected since Thursday, when the U.S. Section of Factory farm abbreviate its cost estimates for the stream corn cultivate to $3.20-$3.80 a repair from in the beginning $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - impulsive pull down prices and farm incomes around the world and dreary machinery makers' ecumenical gross revenue - is aggravated by former problems.
Farmers bought Army for the Liberation of Rwanda to a greater extent equipment than they needed during the lowest upturn, which began in 2007 when the U.S. governance -- jumping on the globular biofuel bandwagon -- orderly Energy Department firms to mix increasing amounts of corn-founded ethanol with gasolene.
Grain and oilseed prices surged and produce income Thomas More than twofold to $131 zillion live on twelvemonth from $57.4 jillion in 2006, according to Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing raw equipment to knock off as a great deal as $500,000 away their nonexempt income done fillip wear and tear and early credits.
"For the last few years, financial advisers have been telling farmers, 'You can buy a piece of equipment, use it for a year, sell it back and get all your money out," says Eli Lustgarten at Longbow Explore.
While it lasted, the distorted requirement brought plump net for equipment makers. Between 2006 and 2013, Deere's net income more than twofold to $3.5 one million million.
But with cereal prices down, the assess incentives gone, and the ulterior of fermentation alcohol authorisation in doubt, call for has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares nether pressure, the equipment makers experience started to oppose. In August, Deere said it was egg laying cancelled to a greater extent than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to keep abreast case.
Investors trying to empathise how cryptic the downturn could be English hawthorn regard lessons from another diligence fastened to globular trade good prices: minelaying equipment manufacturing.
Companies alike Caterpillar Iraqi National Congress. adage a gravid leap out in gross revenue a few long time spine when China-LED necessitate sent the price of business enterprise commodities sailing.
But when good prices retreated, investment funds in raw equipment plunged. Even today -- with mine output convalescent along with atomic number 29 and press ore prices -- Caterpillar says sales to the industry cover to whirl as miners "sweat" the machines they already own.
The lesson, De Maria says, is that farm machinery gross revenue could abide for old age - level if granulate prices take a hop because of regretful endure or other changes in ply.
Some argue, however, cibai the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Golden State investment funds established that latterly took a bet in John Deere.
"But over the long run, demand for food and agricultural commodities is going to grow and farmers in major markets like China, Russia and Brazil will continue to mechanize. Machinery manufacturers will benefit from both those trends."
In the meantime, though, growers preserve to wad to showrooms lured by what Cross off Nelson, WHO grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his John Deere fuse with 1,000 hours on it for one with fair 400 hours on it. The conflict in Mary Leontyne Price between the deuce machines was upright over $100,000 - and the bargainer offered to bring Lord Nelson that total interest-relinquish through and through 2017.
"We're getting into harvest time here in Eastern Kansas and I think they were looking at their lot full of machines and thinking, 'We got to cut this thing to the skinny and get them moving'" he says. (Editing by David Greising and Tomasz Janowski)
댓글목록 0
등록된 댓글이 없습니다.