Stocks bite the dust after USDA reports surprisingly high crop yields

Kelly Song

Thu, Aug 10, 2017, 4:30 PM

Investors are scrambling to sell off farm stocks amid USDA forecasts of higher-than-expected crop yields.

With Agco (AGCO) dropping 2.6 percent to $70.59 per share during trading hours Thursday, Deere (DE) falling 2.4 percent to $129.27, and CNH Industrial (Milan Stock Exchange: CNHI-IT)slipping 1.5 percent to $11.59, farm-machinery manufacturers seem to be struggling to revive demand for equipment.

All crop yields except corn have collectively increased from 2016, according to a USDA report Thursday. Corn production dropped 7 percent from 2016, soybean production rose 2 percent, cotton production 20 percent, and winter wheat production rose 1 percent higher than its July forecast.

With elevated crop surpluses decreasing farmer purchasing power, machinery sales in North America have fallen in the past three years, according to The Wall Street Journal.

WATCH: 'Big mechanical cow' turns crops into energy

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Stocks bite the dust after USDA reports surprisingly high crop yields

WATCH: 'Big mechanical cow' turns crops into energy

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