The state of American agriculture is 'rapidly deteriorating' into crisis, J.P. Morgan said on Tuesday.
U.S. agriculture is facing a three-pronged crisis of declining exports to the rest of the world, a poor crop of corn and soybeans and the trade war with China.Given the risks to U.S. agriculture, Deere's stock is "now skewed to the downside," Duignan said.
"Overall, this is a perfect storm for US farmers," J.P. Morgan analyst Ann Duignan said in a note to investors. "As a result of tariffs and excess global supply, US soybean export inspections are down 27%" year over year, Duignan said. She added that, at the same time, South America is having a banner year for production so "the export market is growing ever more competitive.
Domestically, "the Midwest is off to a very slow start in 2019/20," Duignan said. The "planting season [is] off to a bad start," she said, and both corn and soybean crops are far behind in "planting progress" compared to last year.Given the factors facing U.S. agriculture, Deere's stock is "now skewed to the downside," Duignan said. Her firm lowered is rating of Deere to underweight from neutral, with a price target of $132 a share, from $154 a share.
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.
JP Morgan: The US-China tariff battle is just the start of a global trade reorderingAs the relationships between countries shift over the next few decades, expect trade to remain a hot button issue, according to one analyst.
Read more »
Morgan Stanley: More tariffs will lead to a US recessionMorgan Stanley's Michael Wilson says companies will have a tough time offsetting the cost of higher tariffs, which could tip the U.S. economy into a recession.
Read more »
If these stocks break down, then you know the trade war is seriousA downturn in the semiconductor space would be a meaningful warning sign in the trade war with China, J.P. Morgan say.
Read more »
Private prison company GEO Group is worried that public pressure to divest could hurt its bottom lineJP Morgan and Wells Fargo divested from private prisons after a massive public pressure campaign. GEO Group is worried about what may come next.
Read more »
Kinder Morgan Canada to remain independent after strategic reviewPipeline company Kinder Morgan Canada Ltd said on Thursday it would continue as ...
Read more »
Morgan Stanley upgrades Coca-Cola to overweight: 'Coke is now our top mega-cap staples pick'Coca-Cola shares traded higher following the bullish call from Morgan Stanley.
Read more »
Morgan Stanley says it's too easy to own a Tesla now and that's hurting the brandTesla's mass market growth may hurt the brand's appeal and diminish demand for its cars, Morgan Stanley said on Friday.
Read more »
Morgan Harper Nichols Is Carving Space For A New Kind Of Professional ArtistNichols offers important advice for aspiring artists: go freelance and explore what you like before you commit.
Read more »
MORGAN STANLEY: Trump's trade war is only part of the battle. Here are 4 other reasons the stock market's struggles are just beginning.Morgan Stanley CIO Michael Wilson says he's identified four serious threats to the market that go beyond the worsening US-China trade war.
Read more »
Bode Miller, wife are expecting child — almost one year after daughter's drowning deathFormer Olympic skier Bode Miller and his wife revealed they are expecting a child. The couple's 19-month-old died last year in a drowning accident.
Read more »