“And in Brazil, our order books are full through the third quarter.”

In context

“ental demand may drive improved prices based on the tight stocks to use ratios that Josh mentioned. John May: Good point, Josh. Shifting to global markets, we are continuing to see early signs of sentiment shift in South America as Brazilian farmers benefit from improved corn and soybean profitability as crop yields recover amid a weakened real. While European markets remain at sub trough levels. We're seeing some green shoots in that region as well. European growers are seeing stability in wheat prices which, along with a return to trend yields, should support a recovery in key arable crop markets alongside an already strong dairy and livestock segment. Turning to order books. Availability for both North American produced large tractors and European-produced mid tractors as into October. And in Brazil, our order books are full through the third quarter. It's worth noting that we have less order visibility in turf equipment and compact utility tractors. The reduction in our small Ag and turf guide embeds lower demand in these markets, driven by weaker consumer confidence. Josh Beal: Perfect. Thanks, Josh. Shifting to inventory. Can you unpack what we're seeing over the last quarter for both new and used? John May: Yes, absolutely. The current focus for Deere is centered on used inventory in North America as actions we took over the prior 18 months helped to right-size new inventory levels in the U.S. and globally. For example, in North America, our new inventory for tractors above 220-horsepower is down over 40% year-over-year on a unit basis, while new combines are down nearly 25%. The story is a little bit different for used inventory o”