Navigating Seasonal Challenges & Chemical Opportunities
The end of Autumn brings a familiar mix of anticipation and apprehension across our agricultural regions. Recent weather has been a stark reminder of nature's variability, delivering crucial rain to some fortunate areas while leaving others, particularly in South Australia and parts of Victoria, still grappling with severe drought conditions. We recognise the significant disparities and the operational challenges these create. Like you, we're hoping for consistent, "average" rainfall throughout June to improve the seasonal outlook for all.
Agrichemical Market: A Continued Buyer's Advantage
Domestic Climate: The subdued domestic demand for agrichemicals, driven by the dry start, continues the trend of the past quarter. This has solidified a buyer's market, with growers benefiting from highly competitive pricing among resellers over the last six months. Consequently, the Australian market enters June with an oversupply of summer spraying and knockdown herbicides. This scenario is expected to persist until widespread, significant rainfall stimulates on-farm activity.
Global Influence (China): Mirroring the domestic situation, chemical production and supply in China have outpaced global demand. This has resulted in historically low pricing for key IMI herbicides, such as Imazamox/Imazapyr products (e.g., Smart Commandeer) and Clethodim formulations (e.g., Smart Clethodim). Intense competition within the Australian market ensures these substantial cost savings are passed directly through to you, the grower. This environment highlights the critical role of independent suppliers like Crop Smart in maintaining competitive pressure and price transparency – a responsibility we take seriously for Australian producers.
Key Product Insights & Strategic Considerations:
Clethodim – Act Decisively: We draw your attention to Clethodim. Despite an overseas production disruption, current local pricing for 1000L Clethodim 360 is in the mid-to-high $8/L range in Crop Smart stores. However, the replacement cost out of China has already surpassed $10/L. We anticipate this will translate to higher domestic prices as the season progresses. We strongly advise securing your Clethodim requirements sooner rather than later to capitalise on current favourable pricing.
Other Product Availability:
- Supply for most other post-emergent products is currently adequate.
- However, please note that Prosulfocarb and Syngenta’s Talinor are in tight supply.
- A recent increase in insecticide demand is also constraining the availability of Dimethoate and Omethoate. Planning ahead for these products is recommended.
External Factors - US Tariffs
At present, the recently announced US tariffs have had a minimal direct impact on the Australian agrichemical market. We will continue to monitor this situation closely, as indirect, flow-on effects can emerge over time. However, the current assessment indicates no immediate cause for concern for local supply or pricing.
Fertiliser Update
Since our last report, Urea prices have softened internationally primarily on the back of China re-entering the export market with a quota of 3 million tonnes. Chinese tonnes are expected to start physically shipping second half of June.
As May closes out attention turns to the next Indian tender which has just been announced for 1.5 million tonnes. The tender closes 12 June with shipment to take place by July 31. The Indian tender combined with Brazil purchasing is expected to keep FOB prices at current levels for the medium term.
Nitrogen markets domestically remain very quiet in the South with limited tonnes sold. Pricing has come down on the back of the lower FOB’s on offer internationally and a higher AUD. Supply is satisfactory at moment and expected to remain this way until we see meaningful rain across SA and Victoria.
Summary
We sincerely thank you for your ongoing business and partnership, especially during what is proving to be an exceptionally challenging start to the season for many. We share in the relief of those who have received beneficial rains and remain hopeful that June will bring the widespread moisture needed to turn conditions around for all.
Our team along with delivery trucks are primed ready to assist with your in crop requirements so please be in touch.
In these demanding times, the importance of community and connection cannot be overstated. Please look out for your neighbours and colleagues and remember to reach out if you or someone you know requires support.