deere

Could Mother Nature Drag Deere Down

10mo ago

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Today, Brendan discusses how severe drought problems in the Midwest could hurt Deere (NYSE: DE). The U.S. Department of Agriculture already reduced its 2013 corn and soy bean yield expectations, and those numbers will only get worse as the drought continues. Even though farmers might make more money on higher crop prices, they are unlikely to purchase new farm equipment in the face of a poor croup output. And while emerging market demand will offset this somewhat, the drought accelerated the saturation of the U.S. markets that reduce Deere's domestic sales. Because of these lower yields, Brendan sees Caterpillar as a much more profitable stock to own in the near future.

deere

Could Mother Nature Drag Deere Down

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