What’s Happening in the Market – April Update
The dry impact
The dry start to the year is having a significant impact on our local chemical markets. Growers are unwilling to commit to purchasing too much stock and forward buying as they normally do throughout the March-April period.
The low demand is having a large impact on the industry as a whole with the resellers shifting the pressure to the manufacturers as they try to avoid carrying unwanted stock.
How much is enough?
But the big question we are asking is – Do we have too much or not enough stock?
Manufacturers are being asked to carry all the risk, so the outcome is simple for Australian farmers.
If it doesn’t rain, there is plenty of stock available and the resellers and manufacturers will be keen to sharpen up pricing to move stock. On the flip side, if it does rain, prices will quickly rise as there will be limited stock and given the dry spring outlook, it’s unlikely any manufacturers took risks with producing excess stock.
Besides from Prosulfocarb, nothing appears short until it rains. I’ll come back and discuss post-emergent products next month, but for now, it all hinges on what comes out of the sky and when.
