What’s Happening in the Market – August 2021
August Market Update
Things are looking very green and healthy in most areas, and the question is now, “how soft and wet will the finish be?”. We have two different situations unfolding across our network. The lower to mid-rainfall areas that have promising crops are now looking for rain to finish them off. This includes the Upper EP, Upper YP and most of the Mallee and Wimmera. Our high rainfall areas of Lower EP, around Yarrawonga and Southern VIC, have a full moisture profile and are looking for some sunshine to promote more growth. It seems like it will be challenging to please everyone over the next 6 weeks!
We spoke in-depth about fungicide and urea demand last month, and proactive growers ordered early and got organised. It’s been a challenging year to predict how much product is required as it’s been a year where an ‘extra’ spray has gone out in nearly all regions. This has certainly put a higher demand on domestic supply, and we’ve seen fungicides and urea close to a sell-out in the market. We encourage people to continue to be more organised than normal over the coming months as the world supply chains continue to struggle to keep up. It’s been a year to work with proactive sales reps and resellers that forward plan, and we’re working really hard to be the market leader on that front. If we can do better for you, please let us know; we’re always open to honest feedback.
Fertiliser continues to be difficult to predict for next season. We are seeing prices for AP’s start to hit 4 figures, and it’s difficult to look into the crystal ball and to understand when is the best time to purchase for sowing next year. For now, sit back, and our sales team will bring you opportunities that we think are worthy of consideration.
It’s great to see grain prices continue to strengthen, and the sharp rise of canola to just under $900T has been impressive to watch. As a result, demand for canola seed next year will be high, so we’ve already spoken with most of you, but this will be one product that you’ll need to plan early with your agronomist and Crop Smart sales rep on. As a flow-on result, you’ll also see any crop protection products containing canola oil increase in price, e.g. Smart Accel spray oil. I’m sure this is a small price to pay for our canola growers as the net result will be favourable. Let’s hope the other commodities continue to increase over the coming months.
Please get in touch if we can help you with any of your requirements this season or next. Good luck for the remainder of the season; let’s hope the rain continues to flow in our low to medium areas and the sun comes out in the high rainfall areas, not a simple request, we know!