Market Update October 2024
The current season has been particularly challenging for many farmers across our network, in some regions, the rainfall levels are reportedly the lowest they’ve been in a century.
On a more positive note, it’s been great to catch up with many of you over the past month or so at the field day events across SA, VIC and NSW. And for those of you preparing and sowing summer crops we wish you all the best for the season ahead.
Chemical pricing update
We have seen the glyphosate market lift around 10% in China, and again our June offer proved to be a very good purchasing opportunity. Due to tough conditions and low demand locally the retail market hasn’t lifted to the same extent as Chinese pricing. This gives some good buying opportunity.
Paraquat pricing remains flat and there is good supply available across the country.
We’ve seen a lift in 24D pricing this year compared to last season and are hearing of some supply shortages outside of our business, which tell us if we did happen to see early summer demand, supplies may be hampered.
We recommend speaking to your local Crop Smart rep if you have any early summer requirements.
Fertiliser update
Domestically, fertiliser markets in most areas are very quiet as you would expect for this time of year as our attention turns to the 2025 season with budgets, rotations and farm plans starting to get prepared.
Phosphate Market Update
Hurricane Milton has disrupted operations at multiple phosphate plants and affected port activities in Florida (Tampa Bay is home to three major phosphate processing facilities owned by producer Mosaic with capacity totalling 5.7m tonnes/year), tightening supply and driving up prices for DAP and MAP fertilizers in the US.
Outside of the USA Chinese DAP remains cheaper than other markets however they are limiting shipments to India and focusing on higher price offers elsewhere. Over the next 30 to 60 days, DAP prices in India are expected to stabilise with potential for slight increases. MAP prices are likely to remain steady, supported by demand from the Northern Hemisphere.
It’s still unclear what quota China will have in the 1st quarter of 2025 however suppliers are confident product will be available for export at the back end of this year (Q4 2024) and are planning to load vessels pre-Christmas which is positive. Barring any major incident our expectations for phosphate pricing will be similar to this year.
Nitrogen Market Update
Urea prices are on the rise domestically and internationally driven by strong demand from India and limited supply from the Middle East and Southeast Asia. India recently secured 600,000 tonnes with additional tenders expected demand is likely to remain high through November and December. Meanwhile, favourable weather forecasts in Brazil could further strengthen urea purchases as planting activity increases in this huge market.
Domestically prices have risen from the low point of approximately $600/tonne and are now pushing $700/tonne ex port. No doubt plenty of soil testing to take place in the coming months to determine nitrogen strategies for 2025.
Those with crops to come off, we wish you a successful harvest ahead. Please reach out to us if there is anything we can help you with.
