Tractor factory Deere, based in Moline, Illinois, reported revenues that missed forecasts Friday and lowered their outlook. Although the company reported a 5% jump in aggregate sales thanks to the healthy demand for construction and forestry equipment, Deere referred to "persistent uncertainty in agricultural markets" as a problem.
"Ongoing concerns about export market access, near-time demand for goods such as soybeans and a delayed planting season in much of North America, cause farmers to be much more cautious about making big purchases," said Deere CEO Samuel Allen in a statement.
It's no secret that the growing trade tensions between the US and China are bad news for Deere and American Peasants
JPMorgan analyst Ann Duignan lowered her outlook on Deere earlier this week to an "underweight" – essentially a seller – in a report, Duignan cited Chinese tariffs on soybeans, as well as an outbreak dd of African swine fever in China as two major problems.
She added that the competition from Brazilian and Argentine soybeans and grain farmers, a strong US dollar and bad weather in the Midwest are other factors that are problematic for Deere.