What’s Happening in The Market – January 2021
Happy New Year! Great to hear most of you had average to above-average seasons, and now harvest is done and in the silos. It was certainly a year where our Victorian customers outdid their SA counterparts in yields in general, but the biggest story was our NSW customers harvesting their best crops ever after enduring three years of drought or extremely tough seasons. Let’s hope 2021 is kinder to us with COVID, international markets/relations, and of course rainfall.
As far as chemical supply goes, the message is similar to our last market update. Shipping is being delayed continuously from overseas countries where raw ingredients are sourced. While China is making life more difficult for Australian Exports by putting tariffs and refusing to accept some Australian produce, we don’t have the same issues with them supplying us. They are still exporting as usual with the only issues being shipping delays. As a result, we can’t get product as quickly into Australia from China and other countries. What does this mean for you? Once again, it seems like we keep saying this but, “be more organised with your purchasing”. In markets like this, shortages are more likely, so please be organised and plan ahead.
Glyphosate – we’ve seen the bottom in June this year, and prices are still rising. They haven’t stopped increasing overseas, so the later you buy, the more expensive it will be. The best pricing you will get for sowing is to buy now.
Paraquat – has reached some of the lowest levels we have seen for years, and you should look to build stock if you can carry it.
Sowing Chemical – there’s no panic on this yet, but we will be aiming to get you organized over the next few weeks. If you haven’t heard from us yet, feel free to start planning with your agronomist and Crop Smart sales rep if you haven’t already.
Fertiliser – We said last month to watch out for market dynamics changing quickly, but we didn’t expect things would be as dynamic as they have been. There’s still a way to go with the fertiliser this season, but it appears early purchases have well and truly paid off. Nitrogen and Phosphorus have risen sharply in the last few weeks, and supply is extremely tight with very limited volumes available on Phosphates. Whilst we don’t expect Urea to be as tight as Phosphates, we suggest you stay in touch with your local Crop Smart Sales Rep on fertiliser to ensure good supply this season.
We hope everyone has enjoyed, or is enjoying a great break over the summer, and we look forward to a nice wet start to the 2021 season. All the best.