The figures demonstrate a counter position to the generally optimistic outlook of the sector
One set of the critical data releases I have been closely following is South Africa’s agricultural machinery sales. This data has, in the past six months, continued to surprise me, painting an optimistic picture, which was the opposite of what I had expected.
What was aligned with my general view were the July 2023 tractor sales, which showed the sharpest annual decline this year, down 15.4% year-on-year, with 660 units sold. The combine harvester sales were down by 11% year-on-year, with 32 units sold. Still, one will have to watch the sales of the next few months to understand whether we are now in a downturn in machinery sales or there will still be a continuation of the past few months of delayed orders.
Second, agricultural machinery sales have been robust in the past few years, so the replacement rate will be reasonably low for the next season. For example, tractor sales for 2022 amounted to 9 184 units, up 17% year-on-year and the highest annual sales for the past 40 years. The combine harvester sales amounted to 373 in the same period, up 38% year-on-year and the highest yearly sales figure since 1985.
Last, the higher interest rates also continue to put pressure on farmers’ finances, adding to my downbeat view that agricultural machinery sales will probably continue to decline in the coming months.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asia suffers China blues; dollar hits 2023 top on yenMonday’s China data is likely to amplify the case for serious stimulus even as Beijing seems deaf to the calls.
Read more »
Miss SA 2023 | 7 photos from Natasha Joubert's crowning moment | LifeNatasha Joubert from Tshwane was crowned Miss South Africa 2023 at the spectacular pageant finale held at the SunBet Arena at Time Square in Pretoria on Sunday night. | News24Arts
Read more »
#FiveThingsYouNeedToKnow: Natasha Joubert from Tshwane was crowned Miss South Africa 2023| East Coast RadioCongratulations to the new Official_MissSA 2023, Natasha Joubert 👸 EastCoastBreakfastOnECR FiveThingsYouNeedToKnow
Read more »
Asia suffers China hangover; dollar scales 2023 top on yenAsian shares slid on Monday as China's property woes amplified the case for serious stimulus even as Beijing seems deaf to the calls, while rising Treasury yields lifted the dollar to a 2023 peak on the embattled yen.
Read more »
Markets looking weak after a huge run in 2023Today on the MoneywebNOW podcast with SimonPB : A look at how to embrace longer investment horizons and Investec on the process of reducing import tariffs. Download podcast:
Read more »