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Optimistic Dealers

Farm equipment dealers are becoming more optimistic as the price of corn rises. A UBS Investment Research survey shows dealers are expecting sales to be up this year compared to sales in 2006. About half of the dealers responding said farm equipment sales may be up either less than 5% or more than 5%. Another 23% said sales may be down 5%, and the remaining 27% expected flat sales. Overall, dealers expect sales to be up 5.85% this year. Dealers in corn regions showed the most optimism.

Higher commodity prices are credited for the improved equipment sales outlook. About 73% of the dealers said the current prices will have a positive impact on sales during the first six months of this year. — Ag Equipment Intelligence

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