Chemical markets are in a lull

27th August 2015 | Markets
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Global chemical markets are in a lull. Everything from cold weather in the United States to a lack of credit in Argentina & Africa are combining to hold buyers back. At the same time, significant increases in Chinese production capacity in glyphosate, and the failure of environmental controls to curtail production by smaller, polluting factories across a range of chemicals has created inventory build up in some chemicals. The resulting oversupply represents good buying opportunities across a range of chemicals – including glyphosate, 24-d and Paraquat, which is timely for Australian growers as we head into the latter part of 2015 and summer. Crop Smart will be active in looking for opportunities to position our customers well. The exceptions continue to be the fungicides Chlorothalonil and Carbendazim, which are in global shortage. This translates into higher prices this season and a reason to purchase early to secure stock.

Late and limited rain in some areas as well as extremely cold conditions has resulted in the 2015 post emergent season having a slow and staggered start across SA and Victoria. Consequently there are good supplies of all major post emergent chemicals such as Clethodim, MCPA LVE, Haloxyfop and Diflufenican with plenty of spraying still to be done.

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