Vasil Dimitrov/E+ via Getty Images
Vasil Dimitrov/E+ via Getty Images
Large agriculture unit sales surged 4% in December with strong growth in 4WD and Combines, while row crop saw first Y/Y decline since August 2020. December is seasonally strong month for large agricultural unit sales according to Baird reports.
December 4% rise for large units compares to November +7.2%, October +29.6%, September +11.1%, and August +16.8%. Bifurcating: US sales were up 3.9% following a 6.7% rise in November; Canada sales increased 4.5% vs. 9.8% in November.
Segment wise dissecting- US sales: 4WD tractors +32.7%, row crop tractors -2.7%, combines +16.3%; Canada: 4WD tractors +141.0%, row crop tractors -12.3%, combines +27.7%
4WD Tractors: sales seen up 42.5% Y/Y vs. 23.4% in November. US dealer inventories up 41.1% Y/Y in November.
Row crop Tractors: sales down 4.2% Y/Y vs. +2.5% in November. Inventories up 44.8% Y/Y in November, the eighth consecutive month of inventory growth and the highest growth since May 2013.
Combines: sales up 18.2% Y/Y in December after 19.5% rise in November. Inventories up 95.3% Y/Y in November. December typically being an above average month of the year for combine sales.
Mid-range tractor: sales drop 8.7% Y/Y in December vs. November -10.4%.
Stocks to tap include Deere & Company (NYSE:DE) and Titan Machinery (NASDAQ:TITN)
Digging contributor commentary on the stock: ‘Deere: A Revised Outlook And Market Overreaction‘; ‘Titan Machinery Trades At A Discount And Agriculture Upcycle Should Continue‘
