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JPM Warns About "Perfect Storm" American Farm Crisis, Slashes Deere To Sell

• https://www.zerohedge.com

An escalating Sino-American trade war is creating turmoil in rural America.

JPMorgan told clients Tuesday, the American agriculture complex is on the verge of disaster, with farmers caught in the crossfire of an escalating trade war, reported the Financial Times.

"Overall, this is a perfect storm for US farmers," JPMorgan analyst Ann Duignan warned investors.

With a farm crisis currently underway, Duignan downgraded John Deere's stock to underweight, citing fundamentals in the Midwest are "rapidly deteriorating."

And his downgrade was well-timed after Deere's earnings overnight, as Bloomberg reports that Deere & Co. is no longer "cautiously optimistic" as it has been for so long.

The machinery giant reported lower-than-expected earnings and cut its annual guidance as its farmer customers shun major purchases amid uncertainty about demand for their products.

"Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases," Chief Executive Officer Sam Allen said in a statement Friday.

And shares are tumbling...

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