Iran War Triggers Surge in U.S. Food Prices Ahead of Elections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy DE?
Source: CNBC
- Food Price Surge: The Iran war has led to soaring oil prices, which are expected to significantly increase food prices in the U.S., impacting voter perceptions ahead of the midterm elections, particularly as the Trump administration faces economic pressures.
- Voter Reaction: Democrats are capitalizing on rising food prices by blaming Trump's war decisions, believing this will affect voter support for Republicans, especially as economic burdens increase.
- Supply Chain Challenges: The costs of food production and transportation are rising due to increased oil and fertilizer prices, with new crops planted this season likely to see higher market prices at harvest time in the fall, exacerbating consumer economic pressures.
- Rising Plastic Costs: The price of plastics needed for food packaging is increasing due to tight natural gas supplies, leading to higher transportation and storage costs for fresh produce, which may drive consumer prices up further in the coming months.
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Analyst Views on DE
Wall Street analysts forecast DE stock price to fall
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 575.710
Low
458.00
Averages
514.25
High
560.00
Current: 575.710
Low
458.00
Averages
514.25
High
560.00
About DE
Deere & Company is engaged in the delivery of agricultural, construction and forestry equipment. Its segments include production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). PPA segment defines, develops and delivers global equipment and technology solutions for production-scale growers of large grains, small grains, cotton and sugarcane. SAT segment defines, develops and delivers global equipment and technology solutions for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers. CF segment defines, develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry and roadbuilding production systems. FS segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment and others. Its products include John Deere Autonomous 8R Tractor and E-Power Backhoe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Deere & Company Settles 'Right to Repair' Litigation
- Settlement Reached: Deere & Company has reached a settlement agreement to resolve the multidistrict 'right to repair' litigation pending in the U.S. District Court for the Northern District of Illinois, concluding the case without any finding of wrongdoing.
- Fund Distribution Plan: As part of the settlement, Deere will deposit funds into a class settlement fund, which will be distributed to class members under a Court-approved plan and will also cover administrative and legal fees.
- Commitment to Customer Support: Deere reaffirmed its commitment to supporting customers and service providers by continuing to provide access to repair resources, including tools, manuals, and diagnostic software, ensuring smooth equipment repairs.
- Stock Price Fluctuation: Deere's stock closed at $575.09 on Monday, down $0.62, but edged slightly higher in after-hours trading to $575.21, reflecting a modest gain of 0.02%.
See More
Deere & Company Settles 'Right to Repair' Litigation
- Settlement Agreement: Deere & Company has reached a settlement to resolve the 'right to repair' litigation in the U.S. District Court for the Northern District of Illinois, concluding the case without any finding of wrongdoing, indicating a proactive approach to legal challenges.
- Fund Distribution Plan: As part of the settlement, Deere will deposit funds into a class settlement fund, which will be used to cover administrative and legal fees according to a court-approved distribution plan, ensuring proper handling of litigation-related costs.
- Commitment to Customer Support: Deere will continue to provide customers and service providers with access to repair resources, including tools, manuals, and diagnostic software, further enhancing customer autonomy in equipment maintenance and reflecting the company's focus on customer needs.
- Future Investment Focus: The company will keep investing in customer uptime solutions and delivering industry-leading equipment and technology to help farmers and ranchers work efficiently, ensuring customers have the choice in how their equipment is supported.
See More
Deere & Company Reaches Settlement in 'Right to Repair' Litigation
- Settlement Agreement: Deere & Company announced a settlement to resolve the multidistrict 'right to repair' litigation in the U.S. District Court for the Northern District of Illinois, addressing issues raised in the 2022 complaint without any finding of wrongdoing, allowing the company to refocus on customer service.
- Fund Distribution Plan: As part of the settlement, Deere will deposit funds into a class settlement fund, which will be distributed to class members according to a court-approved distribution plan, ensuring transparency and fairness in the resolution process.
- Commitment to Customer Support: Deere will continue to provide customers and service providers with access to repair resources, including tools, manuals, and diagnostic software, enhancing their ability to maintain, diagnose, and repair equipment safely and efficiently.
- Future Investment Focus: The company will keep investing in customer uptime solutions and delivering industry-leading equipment and technology to assist farmers and ranchers in completing their work efficiently, reflecting its commitment to customer choice in equipment support.
See More
Oil Prices Surge Amid Ongoing Middle East Tensions
- Oil Price Surge: The ongoing U.S. and Israeli strikes on Iran have effectively closed the Strait of Hormuz, pushing oil prices above $100 per barrel, with Dated Brent reaching $141 on April 2, the highest since 2008, indicating significant geopolitical impacts on energy markets.
- Market Stability: Despite rising oil prices, the S&P 500 remained nearly flat on Monday as investors weighed competing reports of a potential ceasefire against a Tuesday deadline set by President Trump, reflecting market uncertainty regarding future developments.
- Employment Data Impact: The Nasdaq had its first opportunity to react to Friday's strong jobs report, which showed 178,000 positions added, nearly triple the consensus, potentially influencing investor confidence in economic recovery.
- Geopolitical Risks: Trump's warning on social media about further military action against Iran if the Strait of Hormuz remains blocked highlights that geopolitical risks continue to be a significant factor in market volatility, potentially leading to further increases in oil prices.
See More
Iran War Triggers Surge in U.S. Food Prices Ahead of Elections
- Food Price Surge: The Iran war has led to soaring oil prices, which are expected to significantly increase food prices in the U.S., impacting voter perceptions ahead of the midterm elections, particularly as the Trump administration faces economic pressures.
- Voter Reaction: Democrats are capitalizing on rising food prices by blaming Trump's war decisions, believing this will affect voter support for Republicans, especially as economic burdens increase.
- Supply Chain Challenges: The costs of food production and transportation are rising due to increased oil and fertilizer prices, with new crops planted this season likely to see higher market prices at harvest time in the fall, exacerbating consumer economic pressures.
- Rising Plastic Costs: The price of plastics needed for food packaging is increasing due to tight natural gas supplies, leading to higher transportation and storage costs for fresh produce, which may drive consumer prices up further in the coming months.
See More
U.S. Manufacturing Severely Impacted by Tariffs
- Stock Performance Comparison: GE and DE shares rose 44% and 21% respectively over the past year, outperforming the S&P 500's 17% and Nasdaq's 13%, indicating some resilience among manufacturing stocks under tariff policies.
- Tariff Impact Analysis: Trump's 'Liberation Day' tariffs raised the minimum import tax rate to 10%, leading to declines in U.S. manufacturing investment, construction spending, and employment in the months following the policy, with construction spending down 11.1% and manufacturing jobs decreasing by 77,000, demonstrating the tariffs' failure to effectively stimulate domestic production.
- Company-Level Impact: 3M expects tariffs to reduce its 2025 adjusted earnings by $0.2 to $0.4 per share, while DE's tariff costs are projected to reach $1.2 billion, with CEO John May stating that tariffs will continue to pressure margins in its large farm equipment business.
- U.S.-China Trade Plunge: Following the tariffs, U.S. imports from China fell by 30% and exports to China decreased by over 25%, with Chinese goods accounting for only 10% of total U.S. imports by the end of 2025, highlighting a significant deterioration in trade relations.
See More
Deere & Company Settles 'Right to Repair' Litigation
- Settlement Reached: Deere & Company has reached a settlement agreement to resolve the multidistrict 'right to repair' litigation pending in the U.S. District Court for the Northern District of Illinois, concluding the case without any finding of wrongdoing.
- Fund Distribution Plan: As part of the settlement, Deere will deposit funds into a class settlement fund, which will be distributed to class members under a Court-approved plan and will also cover administrative and legal fees.
- Commitment to Customer Support: Deere reaffirmed its commitment to supporting customers and service providers by continuing to provide access to repair resources, including tools, manuals, and diagnostic software, ensuring smooth equipment repairs.
- Stock Price Fluctuation: Deere's stock closed at $575.09 on Monday, down $0.62, but edged slightly higher in after-hours trading to $575.21, reflecting a modest gain of 0.02%.
See More
Deere & Company Settles 'Right to Repair' Litigation
- Settlement Agreement: Deere & Company has reached a settlement to resolve the 'right to repair' litigation in the U.S. District Court for the Northern District of Illinois, concluding the case without any finding of wrongdoing, indicating a proactive approach to legal challenges.
- Fund Distribution Plan: As part of the settlement, Deere will deposit funds into a class settlement fund, which will be used to cover administrative and legal fees according to a court-approved distribution plan, ensuring proper handling of litigation-related costs.
- Commitment to Customer Support: Deere will continue to provide customers and service providers with access to repair resources, including tools, manuals, and diagnostic software, further enhancing customer autonomy in equipment maintenance and reflecting the company's focus on customer needs.
- Future Investment Focus: The company will keep investing in customer uptime solutions and delivering industry-leading equipment and technology to help farmers and ranchers work efficiently, ensuring customers have the choice in how their equipment is supported.
See More
Deere & Company Reaches Settlement in 'Right to Repair' Litigation
- Settlement Agreement: Deere & Company announced a settlement to resolve the multidistrict 'right to repair' litigation in the U.S. District Court for the Northern District of Illinois, addressing issues raised in the 2022 complaint without any finding of wrongdoing, allowing the company to refocus on customer service.
- Fund Distribution Plan: As part of the settlement, Deere will deposit funds into a class settlement fund, which will be distributed to class members according to a court-approved distribution plan, ensuring transparency and fairness in the resolution process.
- Commitment to Customer Support: Deere will continue to provide customers and service providers with access to repair resources, including tools, manuals, and diagnostic software, enhancing their ability to maintain, diagnose, and repair equipment safely and efficiently.
- Future Investment Focus: The company will keep investing in customer uptime solutions and delivering industry-leading equipment and technology to assist farmers and ranchers in completing their work efficiently, reflecting its commitment to customer choice in equipment support.
See More
Oil Prices Surge Amid Ongoing Middle East Tensions
- Oil Price Surge: The ongoing U.S. and Israeli strikes on Iran have effectively closed the Strait of Hormuz, pushing oil prices above $100 per barrel, with Dated Brent reaching $141 on April 2, the highest since 2008, indicating significant geopolitical impacts on energy markets.
- Market Stability: Despite rising oil prices, the S&P 500 remained nearly flat on Monday as investors weighed competing reports of a potential ceasefire against a Tuesday deadline set by President Trump, reflecting market uncertainty regarding future developments.
- Employment Data Impact: The Nasdaq had its first opportunity to react to Friday's strong jobs report, which showed 178,000 positions added, nearly triple the consensus, potentially influencing investor confidence in economic recovery.
- Geopolitical Risks: Trump's warning on social media about further military action against Iran if the Strait of Hormuz remains blocked highlights that geopolitical risks continue to be a significant factor in market volatility, potentially leading to further increases in oil prices.
See More
Iran War Triggers Surge in U.S. Food Prices Ahead of Elections
- Food Price Surge: The Iran war has led to soaring oil prices, which are expected to significantly increase food prices in the U.S., impacting voter perceptions ahead of the midterm elections, particularly as the Trump administration faces economic pressures.
- Voter Reaction: Democrats are capitalizing on rising food prices by blaming Trump's war decisions, believing this will affect voter support for Republicans, especially as economic burdens increase.
- Supply Chain Challenges: The costs of food production and transportation are rising due to increased oil and fertilizer prices, with new crops planted this season likely to see higher market prices at harvest time in the fall, exacerbating consumer economic pressures.
- Rising Plastic Costs: The price of plastics needed for food packaging is increasing due to tight natural gas supplies, leading to higher transportation and storage costs for fresh produce, which may drive consumer prices up further in the coming months.
See More
U.S. Manufacturing Severely Impacted by Tariffs
- Stock Performance Comparison: GE and DE shares rose 44% and 21% respectively over the past year, outperforming the S&P 500's 17% and Nasdaq's 13%, indicating some resilience among manufacturing stocks under tariff policies.
- Tariff Impact Analysis: Trump's 'Liberation Day' tariffs raised the minimum import tax rate to 10%, leading to declines in U.S. manufacturing investment, construction spending, and employment in the months following the policy, with construction spending down 11.1% and manufacturing jobs decreasing by 77,000, demonstrating the tariffs' failure to effectively stimulate domestic production.
- Company-Level Impact: 3M expects tariffs to reduce its 2025 adjusted earnings by $0.2 to $0.4 per share, while DE's tariff costs are projected to reach $1.2 billion, with CEO John May stating that tariffs will continue to pressure margins in its large farm equipment business.
- U.S.-China Trade Plunge: Following the tariffs, U.S. imports from China fell by 30% and exports to China decreased by over 25%, with Chinese goods accounting for only 10% of total U.S. imports by the end of 2025, highlighting a significant deterioration in trade relations.
See More
