John Deere Explains What's Happening To The Global Agriculture Market

John Deere

Photo: Ret Fetz/Flickr

South America will solidify itself as the world’s global farming powerhouse in 2013, according to John Deere’s latest presentation on global agriculture.The company forecasts a jump in agriculture sales for the continent of up to 10 per cent, thanks to favourable weather and strong prices.

The picture for rest of the world remains fairly muddled.

Crop prices will remain high into 2013.

In part, because of a large supply and demand imbalance.

This has also caused farmland prices to spike.

And here's where we see South America sprinting ahead of the pack.

Farmers who survived the drought caused equipment sales to rise.

The focus is still on Europe's demise. Weather remains the lone bright spot.

Subdued sentiment in China and India has slowed ag growth there.

In sum, an altogether positive outlook for Deere's particular sector.

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