Race John Deere rides on grain rally

Shares of Deere & Co, the parent company of John Deere, rose to all-time highs this week. Remarkably enough, this is due to the war between Russia and Ukraine. The prices of other machine builders also benefit from this.

Since the outbreak of the war, Deere & Co's share price has already risen 20% to $431 per share. This sets a new record. Deere & Co is one of the performing funds listed on the prestigious S&P 500. Days after the war, the share price dropped slightly, but the way up was soon found again.

High grain prices
The rally is a result of the rapidly rising grain prices in the world, due to the war in Ukraine. The expectation is that arable farmers will be more inclined to invest in new machines as a result, and the machine builder will obviously benefit from this. With the high prices for fertilizers and crop protection products, the use of precision farming techniques - in which John Deere is great - is also more interesting than ever, writes the American investment bank Barclays. Deere's stock has risen quite a bit in recent years. This as a result of the corona crisis that boosted consumer sales of lawn mowers and garden equipment. 

Agco and CNH Industrial 
The share price of Agco, Fendt's parent company, is also on the rise. Just like CNH Industrial's share, which includes tractor brands such as Case IH and New Holland. However, these funds have not yet set new records.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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