Deere’s 1.52% Decline on $670M Volume (131st in Market Activity) as Supply Chain and Rate Hurdles Weigh

Deere & Co. (DE) fell 1.52% on Sept. 3, 2025, with a trading volume of $670 million, ranking 131st in market activity for the day. The decline came amid mixed signals from its core markets and evolving macroeconomic conditions.

Recent reports highlighted persistent supply chain bottlenecks affecting agricultural equipment delivery timelines, though the company maintained production levels above 90% of pre-pandemic capacity. Analysts noted that while the U.S. farm sector remains resilient, rising interest rates are tempering long-term investment in large-scale machinery purchases.

Market participants observed a narrowing margin between new equipment sales and used equipment prices, which could pressure gross profit margins in the coming quarter. A Bloomberg-compiled industry report indicated that Deere’s Q3 order backlog stands at 12% higher than the prior year period, though fulfillment rates remain uneven across product lines.

The stock’s performance aligned with broader market volatility triggered by a Federal Reserve policy update. Despite a 12-month price-to-earnings ratio of 18.3x—well below its five-year average—investors remained cautious ahead of the company’s upcoming earnings release, with consensus estimates forecasting a 6% sequential decline in net income.

Backtesting of historical price patterns from Jan. 2024 to Aug. 2025 shows a 73% correlation between Deere’s stock movements and the S&P 500 Industrial Machinery subsector index. The stock has experienced a 14.2% total return over the past 12 months, with its 200-day moving average currently acting as a key support level at $312.50.