June Market Update
June Market Update
The question that is still concerning our customers is: “Do we still need to worry about shortages and when will supply return to normal?” There are two parts to this answer; the first relates to supply – right now supply of most chemical from china and elsewhere in the world has stabilized, and product can be ordered and will arrive reliably on time. There are some exceptions, such as supply from India and COVID 19 related shutdowns are currently affecting the availability of 24d and triclopyr. However, until there is a vaccine, a functioning supply chain can be cut off at any time with almost no notice. The only way to prepare for this is to carry stock. On this basis, we will continue to encourage you to plan ahead and put stock for the next part of the season in the shed before you usually would.
The other part of the answer relates to demand. This season we’ve had an almost perfect start with summer rain followed by regular showers. This will lead to a high demand for inputs over the next three months. This is different from the last two seasons, so adjust accordingly and stay in close touch with your Crop Smart Rep to keep you covered.
What do we need to be aware of next?
- Fungicides – fungicides look to be in good supply right now but be aware if we continue to have wet conditions that could change quickly. Remember the Glyphosate & NSW story we told a few months ago? Stores in marginal areas aren’t carrying fungicides, and we have had a lot of cereals go in across the country. Central NSW, for instance, is already seeing early signs of stripe rust. We are seeing many customers plan ahead and put the next spray in their shed as insurance.
- Urea – we’ve seen the market price drop rapidly this season and in the last few weeks has bounced back up slightly. The story on Urea is similar to fungicides – currently, good supply, but if wet conditions continue, prices will rise as demand increases. If it rains, be proactive.
- Glyphosate & Paraquat – We have set a large number of farmers up over the past two weeks with their requirements out to next year. The currency is locked in at reasonable rates, and the raw materials have either been shipped already or will be very soon based on being at seasonal low levels. That’s great for price, but the biggest thing we feel we have been able to assist with is we know we have these farmers covered. Whatever happens over the course of this year, there will be no panic for these farmers on these products.
- Russian Wheat Aphids & Chlorpyrifos – there’s been some early detection of Russian Wheat Aphids in SA & VIC. They currently aren’t causing any real damage, and it appears the beneficials will keep them at bay, but if things break out note, there will be an immediate demand on Chlorpyrifos and Pirimicarb.
If we can help you with any of these products or more guidance on where the market is heading, please contact one of the Crop Smart team.
We hope there is plenty of rain to keep coming through this middle part of the season for you all.