Tractor Sales Booming
Farm tractor sales continue high growth. April sales grew over already large 2020 gains. US farm tractors saw double digit growth in the US and Canada as inventories continue to fall. Total sales were 22.7% compared to the year before, with the biggest gains in the one hundred plus horsepower segment – which was up nearly 30 percent.
Combine sales also grew 23%. The Association of Equipment Manufacturers attributes the growth to rising commodity prices.
Organic Food Trade
The US and Mexico are keeping organic food trade open. Mexico agreed to extend the deadline for US organic exports to be certified to its own Organic products law last week. Agriculture Secretary Tom Vilsack met with his counterpart, agreeing to extend compliance to the end of the year. However on January first of 2022, organic exports have to be certified to Mexico’s standard.
The Iowa hay stocks report is out showing a decrease from last year. According to the USDA report, all hay on Iowa farms is estimated at 430,000 tons – a 16% decrease from May first of last year. Disappearance was about two million tons.compared to 1.67 million tons the year before.
A Look at the Markets
After that report, markets are moving around. Analyst John Heinberg has some of the reasons why:
“Strong pressure today after those numbers, not sure if it’s just some money flow moving out of the markets at this time frame, but we’re pushing almost 20 down now on the December corn, 30+ lower on the beans. Obviously on the corn side of the equation that new crop number was above expectations by about 150 million bushels, so that’s bringing some selling pressure there that we maybe can get through but USDA was really counting on a pretty perfect growing year so we’ll have so see how that shakes out. Some of its’ tied to the fact we’ve had these days after the reports here lately we run in on the by-side, now we’re taking some profits out make sure we can find stability here. Strong pressure on the live cattle side as well this morning a couple bucks down in the front months but again that’s not tied to the retail side because carcasses continue good strength. Feels a little more like technical selling here we had that nice little pop back, and like I’ve said we’ve seen mondey leave the commodity space and maybe that’s just causing a bit of a sell trigger in the cattle market. You know hog markets are basically grinding sideways. Retesting some support we have a little price gap under June, about another dollar down from where we are, so maybe we’ll go a and fill that. Kind of watch how that plays otu Fundamentals stay supportive overall in the hogs but we got pretty rich there so might be time we take a pause and see how things shake out especially going into the end of the week.”