Shares of farm equipment maker Deere & Company (NYSE: DE) received a kick in the teeth last week when JPMorgan Chase & Compnay (NYSE: JPM) reduced its rating on the company to neutral from overweight. JPMorgan was, in part, reacting to a U.S. Department of Agriculture forecast that corn inventories will increase even as demand falls off substantially.

Morgan thus predicted that corn prices are poised to fall, which will in turn threaten farmers' purchasing power. Farm equipment sales appear to have already peaked, the financial firm said.

The shares didn't exactly crash the day of the downgrade, but have steadily slipped and given up the rather impressive gains made during the first full week of trading this year.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• CarMax Inc. (NYSE: KMX) Q1 profits tumbled despite its aggressive expansion program.
• Chiquita Brands International Inc. (NYSE: CQB) warned it would miss earnings due to cost hikes.
• Circuit City Stores Inc. (NYSE: CC) Q1 loss widened as same-store sales dwindled.
• Commercial Metals Co. (NYSE: CMC) Q3 profits declined despite strong demand, but beat estimates.
• Coventry Healthcare Inc. (NYSE: CVH) lowered its Q2 and full-year outlooks after a disappointing April.
• FedEx Corp. (NYSE: FDX) missed estimates on higher fuel prices and offered lackluster guidance.
• Ford Motor Co. (NYSE: F) warned that 2008 full-year results would be worse than those of 2007.
• General Electric Co. (NYSE: GE) was downgraded by JP Morgan because of risk to earnings.
• J.M. Smucker Co. (NYSE: SJM) missed Q4 earnings expectations despite acquisitions-based growth.
• La-Z-Boy Inc. (NYSE: LZB) said it swung to a Q4 loss due to diminishing retail sales.
• Lehman Brothers Holdings Inc. (NYSE: LEH) CEO expressed his disappointment in the Q2 results.
• Merrill Lynch & Co. (NYSE: MER) profit warnings and write-downs hit the rumor mill.
• Morgan Stanley (NYSE: MS) beat low expectations despite a hefty decline in Q2 profits (see transcript).
• Pier 1 Imports Inc. (NYSE: PIR) narrowed its Q1 loss but still fell short of expectations.
• Winnebago Industries Inc. (NYSE: WGO) posted dismal Q3 results but still beat low expectations.

More earnings highlights from this week: Goldman Sachs, Best Buy, General Mills, Carnival and others

When natural disasters happen, there are always some companies that can turn the circumstances in their favor. Recent downpours in the Midwest provided such an opportunity as they came not only with high damages for people in the area, but also with floods for crop production, causing even higher agricultural commodity prices. The rise in corn and soybeans prices could easily lead to an increased demand for seeds, agricultural equipment, and fertilizers. BusinessWeek suggests some big names to invest in that could offer us the advantages we are looking for.

One such company is Archer Daniels Midland (NYSE: ADM), which could also benefit from higher ethanol prices, after purchasing seven businesses in 2007. Bunge Limited (NYSE: BG) is also amid possible winners, having forecast better-than-expected fertilizer earnings. Shell eggs producer Cal-Maine Foods (NASDAQ: CALM) is also on the selected list; the company saw its shares climb 15% year to date, and has just revealed a new dividend payout policy.

Another important name is Mosaic Co. (NYSE: MOS), whose stock prices have surged 70% so far this year. BusinessWeek cites Mosaic as being able to benefit from higher prices for fertilizer and potash. Following the same logic, the article points out potash provider Potash Corp. of Saskatchewan (NYSE: POT) and fertilizer distributor CF Industries Holdings (NYSE: CF), which should be able to take advantage of the weak dollar and higher sales prices.

Analysts believe that Deere & Co. (NYSE: DE) has kept its hand on the plow. The general analyst consensus indicates solid expectations that the company will continue to perform at or above expectations. According to AOL Money and Finance, analysts are giving indications that Deere is a buy. In defiance of today's market pull back, Deere & Co. shares have gained one half percent as of this writing.

Media sources are openly optimistic about Deere & Co., though actual commentary is sorely lacking. Barron"s did go far enough to cite that some strategic execution failures of Deere competitors have played nicely for the company. With the weakened dollar giving solid momentum to Deere's international growth focus, and Deere equipment systems showing robust independent sales, for the time being the company appears to be a relatively safe harbor for longer term investment dollars.

Year to date return on Deere is just above a negative 3%, but the 5 year return on this company is over 300%. The best earnings estimates that I can lay a hand on hover around $1.75 per share.

Gary Sattler is a freelance blogger. He does not knowingly hold investment positions in the companies mentioned in this blog post.

On January 16, 2008, a voluntary recall of approximately 5,400 John Deere Compact Utility Tractors was initiated by the Consumer Product Safety Commission in cooperation with Deere and Co. (NYSE: DE). The problem with the tractors is described as a forward drive pedal that can get stuck, creating a potential for loss of control and injury to people.

The recalled tractor's model number is 3203, and you may check the CPSC press release for specific serial numbers. It is suggested that consumers discontinue using these particular tractors and contact a John Deere dealer to schedule a free repair. You may reach Deere & Company at (800) 537-8233 between 8 a.m. and 6 p.m. ET Monday through Friday and between 9 a.m. and 3 p.m. ET Saturday. You are also invited to visit the company website at: www.johndeere.com.

TheStreet.com's Jim Cramer says not even the collapse of ethanol can touch the planting renaissance we're seeing.

The agriculture bull market had been linked to ethanol. Turns out that ethanol is only one piece of the puzzle. What we are seeing for everything from fertilizer to farm equipment to seeds is that there are so many uses and calls on crops that we are having a planting renaissance that hasn't been seen in years.

We have an amazing moment in ag: we are supply-constrained for everything. Fertilizer demand is far exceeding supply, so you get an Agrium (NYSE: AGU) (Cramer's Take) buying a UAP (NASDAQ: UAPH) (Cramer's Take) -- and Agrium goes up.

Fewer players, tighter supply, no new plants coming on to speak of -- this is an amazing moment.

Deere & Co. (NYSE: DE) is getting a boost this morning from competitor CNH Global (NYSE: CNH), which announced Q3 earnings this morning. CNH's profit nearly doubled, lifted by strong operating margins. The company beat EPS estimates by 15% and shares were up almost 8% in early trading, bringing other farm equipment makers along for the ride. Investors will be expecting similarly good news from DE when it reports in late November. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DE.

DE stock has been gaining steadily all year, hitting a 52-week high of $157.30 earlier this month. Deere opened this morning at $147.73. So far today, the stock has hit a low of $147.01 and a high of $149.75. As of 10:55, DE is trading at $149.04, up $4.20 (2.9%). The chart for DE looks bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $115 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in just 2 months as long as DE is above $115 at December expiration. Deere would have to fall by more than 23% before we would start to lose money. Learn more about this type of trade here.

DE hasn't been below $115 since May and has shown support around $142 recently. This trade could be risky if the company's earnings (due out 11/21) disappoint, but even if that happens, this position could be protected by recent support between $115 and $120 where the stock bottomed in August, plus the stock's 200-day moving average, which is currently at $120 and rising.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DE or CNH.

Visit AOL Money & Finance for more earnings coverage

Spurred by demand for ethanol, U.S. farmers have planted more corn than ever before: 92.9 million acres. The bumper corn crop was front and center at this year's Farm Progress Show in Decatur, Illinois, which shows off the latest in farming trends and technologies to an increasingly global audience.

Despite recent protests in France over its genetically modified crops, St. Louis based Monsanto Company (NYSE: MON) not only featured new drought- and pest-resistant corn and soy products to international dealers, but also hoped to shop for the best characteristics of foreign crops from those dealers.

Deere & Company (NYSE: DE) took the opportunity to showcase its biggest roll-out of new products -- from tractors to cotton pickers -- in years. They also featured their recent expansion into international markets, including western Europe, South America, and China. Incidentally, Deere has just announced a stock split and increased dividend.

U.S. Agriculture Secretary Mike Johanns attended the show and took the opportunity to urge Congress to restore the 2007 Farm Bill to more closely resemble the White House version. He also urged Congress to ratify pending free trade agreements with Panama, Peru, and South Korea.

Decatur-based Archer Daniels Midland Company (NYSE: ADM), which recently announced an organizational restructuring, and Peoria-based Caterpillar Inc. (NYSE: CAT), which has its own expansion plans in China, were also represented at the show.

Tomorrow morning, Deere & Co. (NYSE: DE) is going to be reporting its fiscal third quarter earnings before the market opens. Analysts are looking to see the company show earnings for $1.99 a share during the quarter.

When the company announces numbers tomorrow, it will have a chance to make it eight straight quarters of estimate-beating results. In fact, the last time that Deere was unable to beat analyst estimates was back in August 2005, when it failed to match estimates for its third quarter in 2005.

The company has been benefiting from a global increase in demand for its farm equipment, as more interest is being placed in the development of corn ethanol. This should definitely help the company continue to put up strong numbers for several quarters to come.

One analyst, Andrew Casey from Wachovia, has put out a bullish statement on the company, and told his clients to expect to see Deere come through with numbers above analyst estimates. He also went on to say that he expects a strong commodity market to result in higher cash receipts for the company for several years in the future.

Regular BloggingStocks readers know by now that my investment strategies are fairly conservative and relatively coarse. Please don't begrudge me that. Although I don't track my picks in a portfolio, I do mentally track the general performance of the companies I tout, and I believe that overall I've done fairly well.

There are two major differences between my stock-picking efforts and what I perceive to be Warren Buffett's style. First, Mr. Buffett has years of experience that I myself do not have. Second, Mr. Buffett likes to have a greater working understanding of the nature of the businesses he chooses to investment in than I do. I choose my companies of favor with what I call my "big picture" strategy. All that means is that I use a broader view than most of my contemporaries who like to dig right down to the very roots of their picks.

I like to think that my strategy provides solid conservative support, which shall then free an investor to do some aggressive speculating with their profits.

A June 21 BloggingStocks blog post reported that media money mogul Jim Cramer pointed at John Deere & Co. (NYSE: DE) and said "Deere good." My question is, where exactly was Jim Cramer on that company two weeks ago? Someone needs to point out to Cramer my old saying, "The first horse to the bucket gets the grain." While Mr. Cramer's lemmings are scurrying towards a peak already established, my herd is resting in the pasture belching oh so contentedly over Deere's recent new high. So now Cramer says Deere is a hot buy? What's wrong with this picture?

They say: The proof is in the pudding, so here's some pudding for you. On June 9, I made clear that Deere & Co. was buying a well-established and recognized Chinese tractor manufacturer. I'm guessing that's more than Cramer has told you. Deere is expanding its worldwide foot print. I told you so.

They also say: Nothing good ever comes easy, and I believe that to be true. So you may have cause to sit up and take notice when I tell you that Deere & Co announced a new product line because in my opinion almost anything new from John Deere & Co. is good. I told you that too!

On May 29, Cramer called Deere a pick and on June 13 Cramer called Deere a gainer, but I'm supposing that's all the in-depth information Cramer had for you. The plain truth of the matter is, if it's in-depth, up-to-the-minute information you seek, BloggingStocks has it for you and you won't have to watch us scream or yell or wear a diaper like some media stock pickers we know would ask you to suffer through.

Here's all the John Deere & Company insight BloggingStocks has brought to you!

Deere & Co. (NYSE: DE) opened at $121.50. So far today the stock has hit a low of $121.32 and a high of $122.47. As of 10:25, DE is trading at $122.46, up $0.96 (0.8%).

DE has been climbing steadily over the past 10 months, hitting a new one-year high of $125.21 yesterday. Jim Cramer stated that he would aggressively buy DE right now based on some wrong assumptions in the market that have been holding the stock down. While investors had been expecting farm subsidy reforms to hurt the sector, those reforms don't look like they're coming any time soon. Recent technical indicators for DE have been bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $100 range. DE hasn't been below $100 since January and has shown support around $114 recently. This trade could be risky if Congress does end up enacting some farm reforms, but even if that happens, this position could be protected by the support the stock found just under $105 back in March, plus its 200-day moving average, which is currently at $100 and rising.

Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DE.

Boasting higher efficiency, versatility and power along with specially engineered operator comfort and control, John Deere & Company (NYSE: DE) announced on June 1, 2007 the debut of a completely new line of self propelled sprayers. The equipment line identified as "Series 30 Sprayers" boasts state of the art "integrated performance–enhancing technology which includes precision guidance, mapping and variable rate software." Additionally, as is the Deere standard, the "operator interface" aspects of the equipment has been given focused attention, meaning that ease of use, safety and comfort take these Deere machines well beyond the qualities of simply being useful.

The 30 Series Sprayers are sold and supported by John Deere Commercial Application Dealers and Application Support Dealers at 254 locations throughout the U.S. and Canada. Deere continues to show long term dedication to its clients and seeks to maintain its well deserved image of stellar customer service.

For further information regarding John Deere & Co. self propelled sprayers you may visit the company's website where you can also get up-to-date investor information on the company.

Gary E. Sattler holds no financial interest in and is not compensated by John Deere & Co.

This morning Deere & Co. (NYSE: DE) reported its second fiscal quarter earnings and the company easily beat analyst estimates. Led by strong international sales, the company earned $2.72 per share which were well above the $2.41 per share estimates that analysts had expected.

Sales for the quarter were a strong $6.68 billion which also past analyst estimates which had been for $6.46 billion.

This strong quarter should really come as no surprise. With the spike in commodities over recent months it is only logical that farmer equipment stocks are going to remain strong.

But what is surprising is where the company showed its strength. Equipment sales in the US and Canada were actually down slightly (3% for the quarter and 4% year to date), but international sales skyrocketed. Sales outside the US and Canada rose by 22% which helped give the company an overall increase of around 5% in total sales.

Traders are buying up the stock in the premarket, pushing shares up 1.5% to $122.50 up $1.84. It will be interesting to see how well the news of the US and Canadian sales figures is digested by Wall Street. I wouldn't be surprised to hear the company discuss the impact of poor weather through the first half of April had on these sales. Yesterday, while liveblogging Home Depot's first quarter conference call we heard a lot of discussion about April weather impacting sales, and this could be a theme that we continue to hear today.

Deere & Co. will be hosting its conference call this morning starting at 10:00 AM EDT, and BloggingStocks will be covering the call in its entirety. So be sure to check back around 10 for complete coverage and up to the minute discussion on the company's call.

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor'sObserver.

With his latest research reports titled "Corn Conundrum" and "Grain Mayhem" a reader might be concerned that the latest ideas from Kevin Kerr are complex agricultural vehicles.

On the contrary, the editor of Marketwarch Global Resources Trader -- who is currently visiting farms and ethanol plants to get a first hand look at the situation -- believes that the investment vehicle of choice within the agricultural market is a farm equipment maker.

Corn and soybeans have rarely been a hot topic among average investors. But with ethanol now on the "front burner," farming has gotten a new-found interest among speculators. Indeed, Kerr is bemused that the financial news recently featured a "countdown clock" when the rather obscure USDA's planting intentions report was released.

He quips, "The latest planting intentions report garnered much fanfare. But a countdown clock? The report was hardly in need of one." And while this report might be of interest to grain traders, Kerr notes that most investors are best focused elsewhere.

He says, "Whatever side of the fence you fall on in the great corn-ethanol debate, one thing remains clear. Farmers have been having some banner years lately and it's almost like a new gold rush. And whether corn surges and soybeans fall or if soybeans rally and corn backs off, farmers still need new equipment."