Deere Profits Falling; Poultry Fourth Quarter Prices Stabilizing
Agriculture equipment manufacturer Deere & Company faces a third straight year of falling profit as farm income is suffering from an oversupply of crops. Farm income is down more than 50 percent over the last three years and predicted to drop by another two percent this year. The company said Friday net income in the 12 months through October will be about $1.3 billion, down from the most recent projection of $1.4 billion. The earlier prediction had a drop in equipment sales of seven percent. However the company now predicts sales will fall about 10 percent for this fiscal year.
The poultry industry is stabilizing according to Rabobank’s latest quarterly poultry report. The fourth quarter fall in prices stabilized at the start of this year. The main factors driving recovery are increasing demand, lower supply growth in key regions like the US, China, Thailand and Europe, and price support from recovering red meat markets, according to the report. Rabobank says the biggest factor to watch this year is Asian supply. Global poultry meat trade will remain highly affected by avian influenza and trade volatility.