AEM releases tractor and combine reports for January 2017

Mar 09, 2017

U.S. sees decline while Canada experiences huge jump in combine sales

By Diego Flammini
Assistant Editor, North American Content
Farms.com

According to a new report by the Association of Equipment Manufacturers (AEM), there was an increased interest in combines across Canada.

AEM’s Ag Tractor and Combine Report for Canada says 84 self-propelled combines sold in January 2017, compared to 37 in January 2016.

That number represents an increase of 127 per cent, according to AEM. And machinery dealers say they’ve noticed more farmers inquiring about combines.

“We had an excellent 2016. We probably doubled sales between new and used (machinery),” Chris Dahms, a precision land management specialist with Robert’s Farm Equipment, told Farms.com in an interview from the London Farm Show. “But 2017 has been slow to start.”

The jump in sales could come down to the importance of the equipment and potential resale value, he said.

“Combines are a necessity and growers realize that trade value is very important on them,” he said.

When it comes to sales of 2WD tractors, those under 40 HP experienced a 23 per cent increase in sales.

But other 2WD tractor categories saw sales decreases:

Sales of 2WD tractors between 40 and 100 HP dropped by almost 4 per cent and
Sales of 2WD tractors of 100 HP and over were down by 32 per cent.

Canadian sales of 4WD tractors dropped by 43 per cent between January 2016 and 2017.

When it comes to tractor and combine sales in the United States, numbers were generally down, with the exception of 2WD tractors under 40 HP. Sales of those tractors rose by almost 14 per cent between January 2016 and 2017.

Sales of 2WD tractors between 40 and 100 HP dropped by 9 per cent. Sales of 2WD tractors 100 HP and over dropped by nearly 30 per cent.

Sales of 4WD tractors fell by 38 per cent and combine sales decreased by 51 per cent between January 2016 and 2017.

Farms.com has reached out to Farm Credit Canada and Agricultural Manufacturers of Canada for comments on the sharp rise in combine sales.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.