Futures Market News
Bullish commodities push up Deere sales
Nov 15, 2010 03:54 PM
John Deere & Company tractor sales are expected to increase as commodities perform strongly, Bloomberg reports.
Since late July, the Thomson Reuters/Jeffries CRB Index of 19 raw materials indicates commodities prices are higher. But, on top of that, agricultural products have been leading the largest rally since 1972 as cotton prices have skyrocketed 76 percent to record highs, wheat has soared 48 percent and corn has touched a two-year high.
"Those high crop prices will last until the next crop," Jason Henderson, an economist at the Federal Reserve Bank in Kansas City, Missouri told Bloomberg. "Export demand will continue to expand."
In August, John Deere – the world's largest manufacturer of farm equipment – forecast 10 percent more sales. The chief executive officer of fertilizer producer Mosaic reported his company is seeing a significant demand for fertilizer. Both companies' products play a vital role in supporting the life and times of products that contribute to the high figures that are being returned.
"The rural economy is going to lead the way," Henderson said.
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