After slow start in 2020, ag vehicle sales in Brazil up 30% in Nov
After a slow start in early 2020, the sale of agricultural equipment in Brazil during the month of November increased nearly 30% compared to a year earlier. Sales were weak in early 2020 due to mediocre grain prices and the start of the Covid-19 pandemic, but since then, the situation has improved significantly.
Several things led to the turnaround with the most important being the devaluation of the Brazilian currency of about 30% during the first half of 2020. The devaluation made Brazilian grain very competitive in the international market. The combination of the devaluation and very strong demand from China due to the trade dispute between China and the United States, led to record high domestic prices for Brazilian soybeans, corn, rice, hogs, and cattle. Brazilian farmers booked record profits in 2020 and they applied some of those profits to the purchase of new machinery.
The Brazilian National Association of Vehicle Manufactures (Anfavea) reported that tractor sales during November totaled 3,071 units, which represented an increase of 29.5% compared to November 2019. Combine sales totaled 662 units, which was up 34.8% compared to last year. Total sales of agricultural vehicles during November were 4,971 units, which was up 13.3% compared to last year.
Sales of agricultural equipment during the last few months helped to offset the poor start to 2020. During the first 11 months of 2020, sales totaled 42,952 units or a drop of 15.5% year-on-year.
Export sales have not kept pace with domestic sales and Anfavea reported that exports of agricultural vehicles manufactured in Brazil totaled 804 units in November, which was down 27.8% compared to last November with exports during the first eleven months of 2020 totaling 8,042 units, which was down 32.6%.
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