Deere & Co, the maker of John Deere machinery, has raised its sales and profit outlook for 2017 buoyed by strong demand for machinery in South America. Deere increased its profit outlook for 2017 by 7% to $1.5bn, which would be in line with 2016 profits but 20% less than 2015 profits of $2bn. Deere’s agricultural division in particular has endured a difficult time in recent years as agricultural commodity prices have declined. However, Deere now says it can see stability returning to agriculture markets.

The maker of the famous green tractors expects a 3% rise in sales of agricultural machinery in 2017 to just over $19bn. This positive outlook is solely down to the South American market, where Deere sees sales of tractors and combines increasing by between 15% and 20% this year as economic and political conditions improve in Brazil and Argentina.

The outlook in its other important markets is subdued by comparison. Deere sees sales declining between 5% and 10% in the US and Canada, while sales in the EU are forecast to fall 5% in 2017 as farm incomes remain weak.