Combines down but tractors sales up in 2022

Feb 16, 2022

AEM data shows January 2022 Canadian sales of tractors up by 6.3 percent over 2021 period.

The Association of Equipment Manufacturers (AEM) has released its monthly sales report for farm equipment, showing that Canadian sales of tractors for the month of January 2022 were up by 6.3 percent, though combine sales were down by 30 percent.

A comparison of sales data for January 2022 versus January 2021 in the report shows that for 2WD farm tractors with < 40 HP, sales were up by 6.6 percent: 2022 @ 1,141 vs 1,170.

For the same tractors with 40 < 100 HP, the sales numbers dropped by -3.1 percent: 2022 @ 407 vs 420.

2WD farm tractors with 100+ HP improved by 26 percent in January 2022 to 213 units vs 2021 January sales of 169.

Total 2WD farm tractor sales were at 1,761 units in January 2022 vs 1,659 units in January 2021 – for a growth of 6.1 percent.

4WD farm tractors in Canada saw a rise in sales of 16.7 percent. January 2022 saw 28 units sold vs 24 units sold in January of 2021.

Combining the 2WD + 4WD farm tractor sales, we see the 6.3 percent increase in sales: 1,789 units in January 2022 vs 1,683 units in January 2021.

The combine sales, as noted earlier were not as good, down 30 percent: just 49 units sold in January 2022 vs 70 units sold in January 2021.

For comparison, the AEM report noted that US total farm tractor sales only gained 1.5 percent in January 2022 over January 2021, and combines sales for the month fell 41.4 percent to 205 units sold.

For more information on the AEA, visit: https://www.aem.org.

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!