China Trade Pact ‘Ambiguity’ Leaves US Tractor Makers in Limbo
'We Need to See What China Really Buys in the End,' CNH Industrial CEO Marx Says
[Stay on top of transportation news: .]
It’s unclear if the next few months will mark a turning point for the struggling farm machinery sector, with minimal details on the U.S.-China trade deal keeping manufacturers in the dark about when growers will start spending again.
That’s the view from Gerrit Marx, CEO of CNH Industrial NV, one of the world’s largest producers of farm equipment. He pointed to “continued ambiguity” for global trade and “a still existing lack of certainty” for the U.S. agricultural economy.
Farmers have been putting off new equipment purchases as China, the world’s largest commodities buyer, had for months been avoiding imports of U.S. crops.
The Asian nation’s recent ھof U.S. soybeans for the season helped boost futures of the commodity to the highest prices in more than a year. However, the volume of crop purchases to come in the months ahead will ultimately determine if conditions improve enough for the agriculture industry.
“We need to see what China really buys in the end,” Marx said on a call to discuss earnings. “One thing is a deal, the other thing is the actual purchase and the consistency of such purchases month after month.”
Shares for CNH, the maker of Case IH and New Holland machines, fell as much as 12% to the lowest levels since 2020 on Nov. 7 after the company cut its guidance for this year.
Rival Agco Corp. last week said “phones weren’t ringing off the hook” with fresh tractor orders after the trade deal. Market leader Deere & Co. reports results later in November.
Want more news? Listen to today's daily briefing belowor go here for more info:
