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Machinery Pete: It's raining combines

I sent the following e-mail note to our Machinerypete.com subscribers late last night:

I just got back from covering the big dealer auction in Davenport, Iowa, today by auctioneer Ted Everett. Seven dealer groups had equipment on this auction. (26) combines sold. Here's a quick rundown on the COMBINES:

(all hours listed are engine hours)

  • 2009 JD 9870 STS, 555 hours: $219,000
  • 2008 JD 9770 STS, 853 hours: $180,000
  • 2007 JD 9860 STS, 907 hours: $160,000
  • 2009 CaseIH 8120, 385 hours: $207,500
  • 2007 CaseIH 2588, 816 hours: $146,000
  • 2007 JD 9760 STS, 1,059 hours: $150,000
  • 2007 JD 9660 STS, 1,164 hours: $130,000
  • 2006 JD 9660 STS, 1,006 hours: $124,000
  • 2006 JD 9760 STS, 4WD, 1,285 hours: $137,500
  • 2005 JD 9760 STS, 1,297 hours: $121,000
  • 2005 CaseIH 8010, 1,302 hours: $122,000
  • 2006 JD 9660 STS, 1,415 hours: $98,500
  • 2005 JD 9760 STS, 1,764 hours: $95,000
  • 2001 JD 9650 STS, 2,150 hours: $74,000
  • 2000 CaseIH 2388, 2,431 hours: $56,500
  • 2000 CaseIH 2388, 2,876 hours: $55,000
  • 1998 CaseIH 2388, 1,841 hours: $57,000
  • 1998 CaseIH 2366, 2,408 hours: $48,500
  • 1997 CaseIH 2188, 3,930 hours: $30,000
  • 1996 JD 9600, 3,100 hours: $30,000
  • 1996 JD 9600, 3,878 hours: $27,000
  • 1993 CaseIH 1666, 3,670 hours: $21,250
  • 1993 JD 9500, 4,790 hours: $24,000
  • 1991 NH TR-96, 3,957 hours: $6,500 (kinda rough)
  • 1991 JD 9500, hrs?: $22,500

While this information on sale prices from yesterday's big dealer auction is very interesting and useful in and of itself, I think the real power lies in comparing these sale prices from yesterday's auction with sale prices from other auctions, both recent and back 6 to 12, to 18 months ago.

So let's compare.

Let's look at JD 9760 STS combines. In our web site we have (118) sale prices on 9760 STSs. We've seen (18) sold so far in 2010. Click on the link below to view this sale price data:




Pete's auction prices on JD 9760 STS combines >>

As we digest this sale price data, realize what's been happening in the used combine market. There's been a recent shift. Suddenly it seems, the game has changed. Dealers have inventory stacking up. Hence the (26) combines sold yesterday on the dealer auction in Davenport, Iowa. And the (3) CaseIH 8010's sold on the dealer auction Monday (June 7) in Rochelle, Illinois. Also the slug of used combines sold on Purplewave.com's online auction in April as well as big dealer inventory reduction auctions in north-central Missouri and west-central Minnesota in March.

The return of the dealer auction.

Again, to the crux of the matter. What are they selling for and how do those sale prices compare with prices from 2, 3, 6 or 12 months ago?

There's no question that values have dipped on used late-model combines. Our data speaks for itself. Yesterday on the east-central Iowa dealer auction a 2005 model JD 9760 STS with 912 seperator hours sold for $121,000. Back on February 13, 2010, on a large dealer auction in west-central Tennessee, a 2005 JD 9760 STS with 1,246 seperator hours sold for $127,000.

Wow, 334 additional seperator hours yet the combine from Tennessee sold for $6,000 more than one in central Iowa. The key of course was the timing. The Tennessee combine sold in February when the combine market was stronger, the Iowa combine sold yesterday into a weaker market with many more late-model combines available for sale.

I'm seeing the same trend with red combines. The auction yesterday in Iowa had (3) CaseIH 2388 combines. Here's a list of the CaseIH 2388 combines I've seen sold at auction the last three years.




Pete's auction prices on CaseIH 2388 combines >>

On the dealer auction I covered and shot video at Monday in north-central Illinois, a 2001 2388 combine with 3,500 engine hours sold for $55,500. As I ambled along shooting video of the equipment selling I got to visiting with a local farmer Paul. Paul said he was curious what the 2388 would sell for. Turns out Paul traded that 2388 in to the dealer back in February.

$89,000 was the trade in value.

Four months later it sold on the auction for $55,500.

That's always been and always will be the thing about auctions. Put it up for sale and find out what it's worth. Sometimes up (like last 3-6 years), other times maybe down. Maybe down a little or perhaps a lot. It just is what it is. Plain, simple, harsh, whatever you want to call it.

But here's the thing, before we all assume used combine values are falling across the board, our sale price data jumps back in to say hold on a second. What I'm seeing for sale prices coming from farm retirement or estate auctions is the opposite, continued strong sale prices on good used combines.

Just this morning I got an email note from Troy Orr with Orr Auctioneers with sale prices from a farm sale they had near Jamestown, North Dakota, last Saturday. On this auction a 1983 JD 7720 combine with 4,017 hours, in very nice condition, always shedded, sold for $17,500. It wasn't even a Titan II model.

Pretty strong sale price for a 27-year old combine, don't you think?

I sent the following e-mail note to our Machinerypete.com subscribers late last night:

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