She thinks my tractor’s…poor.

Posted by Admin - November 26th, 2009

Many industries have suffered during the recent economic recession because of the inter-connectivity of the financial markets with virtually every other market. This applies equally to the farming and farm machinery industries, in which Deere and Co., colloquially known as John Deere, is a key player. It is without a doubt the large producer of farm machinery in the world.

Apparently the company has had a very bad year, losing some $223 million just last quarter. However, Deere and Co. is hinting that this is a better-than-expected result. It is certainly better than was forecast for the company. A debilitating recession and a lackluster year for crops has resulted in a horrible year for the company, but they are predicting profits in 2010.

This year’s U.S. corn harvest is one of the slowest on record because of cold weather and wet field conditions, the company said on the conference call. Mold and fungus have been found in some harvested corn, the company said. Quality issues may mean a higher demand for grain.

Strong demand and a late harvest are keeping corn prices at an “attractive” level, and tight stocks of soybeans will keep that commodity’s prices “relatively high” in the near term, the company said on the call.

More on the company, and its future here.